Don't Expect to Beat the Benchmark
Paul J. Lim explains why active fund managers have such a hard time beating their index benchmarks - even in seemingly favorable markets.
"Evidence points overwhelmingly to the conclusion that active management of assets fails to produce satisfactory results for individual investors... Index funds provide a clearly superior alternative." -- David F. Swensen, Yale University, Chief Investment Officer
Paul J. Lim explains why active fund managers have such a hard time beating their index benchmarks - even in seemingly favorable markets.
Paul Farrell details how survivorship bias inflates the stated investment returns of the mutual fund industry.
Scott Woolley of Forbes discusses some of the index insurgents who hope to dethrone Vanguard - David Booth (DFA), Jeremy Siegel (WisdomTree), and Robert Arnott.
Walter Updegrave at Money Magazine examines the pros and cons of ETFs versus traditional index funds.
John Spence explains the debate between Vanguard and Barclays over levels of qualified dividend income (QDI) generated by their ETFs.
Jen Ryan of TheStreet.com asks if there are too many new ETFs entering the market - and whether some of these new products are taking advantage of the growing popularity of ETFs and straying from their cost-efficient, market-tracking roots.
Lynn O'Shaughnessy explains why the recent Amaranth disaster is just another reason to be very wary of hedge funds.
Scott Burns explains a new wave of lawsuits aimed at 401(k) trustees for breaching their fiduciary duty by allowing excessive expenses to be included in the investment choices offered to the plan participants.
John Bogle highlights the dangers of rapid ETF trading - and worries about the short-term focus of both ETF providers and investors.