By Jack M. Forehand — The massive move investors have made to passive vehicles over the past few years has been truly astounding. With most active managers underperforming their benchmarks…
Tag: Passive Investing
Buffett Wins his 10-Year, Million-Dollar Wager
Warren Buffett is the winner in the bet he made with finance professionals back in 2007 that, over the ten years between January 1, 2008 and December 31, 2017, the…
GMO Paper Says Indexing the S&P 500 is Risky
A comprehensive white paper published by GMO’s Matt Kadnar and James Montier in August—arguing against a predominantly index-focused investment strategy–was condensed in a recent MarketWatch article. The article quotes the…
BlackRock's Ang on Factor Investing
Andrew Ang, who runs factor investing at BlackRock, argues that factor investing remains “the language of investment excellence” despite naysaying by the likes of Vanguard’s Jack Bogle and smart-beta pioneer…
An Argument Against Passive Investing
As clients move dollars to passively managed funds, investment management firm Grantham Mayo van Otterloo has “remained bearish as markets have lifted valuations,” according to an article in Barron’s. But…
Paul Singer on the Threat of Passive Investing
The hedge fund manager and founder of Elliott Management Corp. argues that passive strategies don’t represent investing per se and that “index fund providers don’t have incentive to push companies…
Leading Economist Says Stocks Can Continue to Climb
Although U.S. stock valuations are stretched, economist and leading authority on behavior finance Andrew Lo says this can continue for years due to growing demand for equities by retirement funds,”…
Shiller Says There Are No Genius Investors in the Long Run
While some investing approaches can work for long periods of time, over the long run, “without deep expertise, it makes little sense to veer much from a simple market portfolio—one…
Vanguard Has Seen More Inflows than All Competitors Combined
In the last three calendar years, investors have poured $823 billion into low-cost index and ETF funds managed by Vanguard, about 8.5 times as much as all of its competitors…
Yale's Actively Managed Fund Performance Waning
The majority of the Yale University endowment fund is invested with active managers but, if you compare its returns to low-cost active strategies rather than to passive indices, “Yale’s active…