The general advice to diversify, reduce fees, avoid active trading, and to keep it simple is easier said than done—especially in 2021, contends an article in the CFA Institute Enterprising…
Tag: Market Cap Weighted Index
The Cons of Market Cap-Weighting
An article in Morningstar discusses the downside of using market-cap-weighted indexes, noting that within certain markets or strategies this approach can “compromise diversification and intended factor exposure.” “The assumption that…
There is Never a Good Time For Active Management – But Now Might Be One
By Jack Forehand (@practicalquant) — When active managers are struggling relative to their benchmarks, you will often hear the same description of the problem. They will talk about how the current…
The S&P 500: Read the Fine Print
If you’re making an argument for passive investing, you’d probably point out that it’s less expensive, it’s tax efficient, and has paid off over long periods of time. In a…