active managers Archives | Wealthfront Blog

Is Indexing Worse Than Marxism?

Burton G. Malkiel, Ph.D — Tue, 22 Nov 2016 04:07:16 +0000

Index funds have always been ridiculed by active mutual-fund managers. Two recent events have fueled a new set of criticisms. The mid-year 2016 Standard and Poor’s report on index fund performance showed that the superiority of low-cost indexing, whether in the form of mutual funds or exchange-traded funds (ETFs), has increased over time. Over the […]

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The Stock-Pickers’ Market Myth

Burton G. Malkiel, Ph.D — Tue, 03 Feb 2015 02:05:54 +0000

Earlier this month, Barron’s ran a cover story that made the case that 2015 was likely to be a “stock pickers’ market.” Active portfolio managers were expected to “recapture their lost glory” as interest rates were predicted to rise. Unfortunately, we have heard similar claims at the start of every year. In early 2014 The […]

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Indexing and the 2014 “Stock-Picker’s” Market

Burton G. Malkiel, Ph.D — Thu, 21 Aug 2014 15:22:46 +0000

In January of this year it was widely believed 2014 would be a “stock-picker’s” market. While the S&P 500® index of large U.S. stocks produced an extremely generous return of more than 30% in 2013, an indexing strategy was deemed unlikely to be effective in 2014 — or so active managers argued in an attempt […]

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