Tag Archives: index investing

Getting Up to Speed with the Essentials of Index Construction

Why choose index investing? Yes, the merits of diversification and low cost are usually factored in, though one critical benefit that many do not realize is the transparency that is provided in the methodology of an independent index provider. To understand what goes into the design and methodology of an index, it’s important to note Read more […]

Core and Satellite – The Best of Both Worlds

The contentious debate of active versus passive is perpetual. Over the past 15 years, SPIVA® Scorecard results have reflected on the trends of active fund management vis a vis benchmarks, wherein statistics tilt the balance in favor of indexing. This recurring feature of benchmark outperformance is contributing to the adoption and growth of the passive Read more […]

The Progression of Passive

The evolution of indexing is one of the most noteworthy trends in modern financial history. The rise of passive investing is the consequence of shortfalls in active performance, as regular readers of our SPIVA reports will recognize. Our recent annual Survey of Indexed Assets shows a surge in S&P 500 indexed assets to $4.6 trillion Read more […]

Dividend Growers vs High Dividend Yielders: How They Compared as Interest Rates Rose

There are generally two types of dividend strategies: Dividend growers: Those targeting stocks that consistently grow their dividends over time High dividend yielders: Those focusing on stocks that pay a high dividend yield Not all dividend strategies are created equal These dividend strategies are constructed differently and may be used to accomplish different objectives. For Read more […]

Consistency: What Rolling Returns Say About Dividend Aristocrats

Historically, three-year rolling returns have revealed consistent outperformance from the S&P 500® Dividend Aristocrats® Index, which is composed of quality companies with at least 25 consecutive years of dividend growth. Why look at rolling returns? Rolling returns offer a more robust way to show performance than traditional one-, three-, five- and ten-year trailing returns. Rolling Read more […]

The Impact of Currency Exposure: Evidence From the Performance of Actively Managed Global Equity and Bond Funds

In the past 18 months, currency hedging has become one of the hottest topics in the investment community.  As the U.S. economy strengthens and decouples from the rest of the developed and emerging economies, and as there is unprecedented quantitative easing by the Bank of Japan and the European Central Bank, it is nearly inevitable Read more […]

Bonds Will Need to Tread Lightly With Domestic And Global Issues

Last week saw the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index close 1 basis point tighter than the 2.61% that started its week.  Thursday was the only day in which the yield moved significantly as yields tightened by 5 basis points in reaction to the weaker than expected Retail Sales release.  Read more […]

Man Bites Dog

Everyone wants to invest with the ‘smartest guys in the room’. But what do the smartest guys invest in? Well, a poll of mutual fund professionals suggests a very surprising result. As regular readers of this blog will know, while there are plenty of managers who can show attractive returns over the past few quarters Read more […]