The Index Fund Approach: Tracking the Market

The goal of many individual investors is to beat the market. A large number, however, don’t—particularly when the costs of trying to do so are considered. One alternative is to apply the old adage, “If you can’t beat ’em, join ’em.” The index fund concept allows investors to do just that. A portfolio of stocks…

 

Investors Win as Discount Brokers Cut Commissions

Save the Date! Our 2017 Investor Conference will be held November 3-5 at the Loews Royal Pacific Resort in Orlando, FL. We’re scheduling many great speakers for the event, including Mark Hulbert, John Buckingham and Wesley Gray among others. You’ll also get to meet my fellow colleagues as well as other AAII members. It’s always…

 

AAII’s Most-Read Articles for October 2016

Here are the Top 10 articles from AAII.com for October 2016 (based on unique page views): The 10 Myths of Retirement Planning Retirement planning requires a clear-eyed analysis of future needs and income, but many individuals view retirement through rose-colored glasses. Here are some of the most common myths and how you can bring reality…

 

Common Investor Mistakes & Other Insights from John Bogle

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Mutual Fund Cash Dilemma Should fund managers let cash build in the absence of opportunities, or should they remain fully invested at all times? While most mutual fund managers are required to stay invested, some have the flexibility to raise their cash allocations,…

 

John Bogle on Achieving Greater Long-Term Wealth Through Index Funds

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: A Second Look at How Target Date Funds Change Their Allocations Target date funds offer the premise of a one-stop solution for investors seeking professional allocation strategies. They are commonplace in 401(k) and other similar employer-sponsored retirement plans (aka, defined-contribution plans). The simplicity of target date…

 

How to Measure the Skills of Your Fund Manager

This week’s AAII Weekly Features highlight these valuable AAII articles: How to Measure the Skills of Your Fund Manager: The statistical measure R-squared can reveal whether a fund manager is a closet indexer or is truly following a strategy different than the benchmark index. What Exactly Do Online Investment Advisory Services Do?: In contrast with…

 

Beware of Paying Active Management Fees to a Passive Manager

Indexed mutual funds (passively managed funds) aim to track an index or some segment of the market with low fees. Anyone who has heard of John Bogle knows that runaway fees can eat into your portfolio performance over the long run. However, a recent post at AlphaBetaWorks Insights warns of “closet indexing”: the practice of charging active…

 

AAII Weekly Features: Achieving Greater Long-Term Wealth Through Index Funds

This week’s AAII Weekly Features highlight these valuable AAII articles: The Top ETFs Over Five Years: Health Care Remains on Top Mathematical Support for Rising Equity Glide Paths Stocks With Low Price-to-Book Ratios Achieving Greater Long-Term Wealth Through Index Funds The featured AAII stock screen this week is the Buffettology: EPS Growth approach. Our Member…