Restrain Your Expectations: An Analysis Of Unconstrained Strategies
Editors' Pick • Wed, Mar. 11 • 3 Comments
- Flexible asset allocation mutual funds attract investors looking to boost results.
- Five evaluation tests help analyze performance.
- The results: Go-anywhere funds offer more opportunities but no excess returns.
Seven Do's And Don'ts Of ETF Trading
Editors' Pick • Wed, Mar. 4 • 29 Comments
- Investors need different skills when trading ETFs.
- Unlike mutual funds, with ETFs the cost of trading is usually borne by the investor.
- Price control and patience are essential.
Active Indexing: Being 'Passive-Aggressive' With ETFs
Editors' Pick • Wed, Feb. 25 • 8 Comments
- The wide use of ETFs doesn't necessarily mean a commitment to indexing.
- Some investors use ETFs to try to outperform the market.
- Vanguard shares the research and explains the risks.
Quantifying the impact of chasing fund performance
Oct. 24, 2014 • 3 Comments
- Performance is tempting for investors.
- Historical simulation in which lower-performing funds were sold shows the superiority of buy-and-hold strategies.
- An important truth: Past performance is no guarantee of future results.
Liquid Alternatives: A better mousetrap?
Oct. 23, 2014 • 1 Comment
- Interest in these funds has increased dramatically.
- But short-term benefits could be undercut by high costs and inconsistent strategies.
- Investors should look to fundamentals, and not novelty or complexity.
Has indexing gotten too big?
Oct. 22, 2014 • 5 Comments
- Index funds/ETFs still constitute a minority of invested assets overall.
- Active investors still determine market prices.
- If indexing became the dominant strategy, there would still be incentive to take risks.
A Better Safe Haven Than Gold
- Gold, much like other commodities, is a volatile asset with significant trade-offs.
- Treasuries have been a more consistent performer versus gold during periods of economic uncertainty.
- A diversified strategy of stocks and bonds versus reactive shifts in the portfolio is a better defense for long-term investors.
2013: The Year That Wasn't (And Was) For Active Management
Jun. 10, 2014 • Comment!
- Despite market conditions in 2013 that seemed friendly to active funds, fewer than anticipated outperformed their benchmarks, according to research from Vanguard's Investment Strategy Group.
- A tendency to chase performance, combined with a wide dispersion of fund returns, diminished clients' chances for beating indexes.
- Investors who choose active funds should consider those with low costs.
- Smart Beta: Not Beta, But A Bet
- The Great Temptation Of The Great Rotation
- Premiums, Discounts, And Volatility
- Rising Rates Shine A Dull Light On Active Bond Funds