Journal Of Indexes

The Case for Currency Overlay

The author argues that the need for increased foreign investment exposure means increased exposure to potential currency losses, but also potential increases in total return of up to 190 basis points per year from more sophisticated management of currency risk. To Lindahl, that means pension funds and other large investment managers can no longer afford to leave their currency exposure unmanaged or passively hedged.

Journal Of Indexes

Devil-Free Indexes

Constructing an index to include the correlations you want and exclude those you don’t want can be more complicated than it seems.

Journal Of Indexes

Active Countries, Passive Stocks

Can a series of indexed country portfolios be actively managed at the allocation level and outperform the sum of the indexes?

Journal Of Indexes

Don’t Look Back, Magellan, Somebody’s Gaining On You

In mid-July Fidelity Investments' Magellan Fund sailed serenely past the $100 billion mark in assets.

As the largest existing mutual fund, Magellan is bigger than all stock mutual funds combined were in 1984 and bigger than the entire fund industry in 1979. Its assets are larger than the gross domestic product of Ireland and every state budget in the U.S.

Journal Of Indexes

Dow Theory Lives!

The authors realized a classic study of that first major try at technical analysis, the Dow Theory, was

Journal Of Indexes

Internet Indexes Survey: Who Do You Like?

A number of so-called 'Internet indexes', some more prominent than others, keep track of the internet industry and related sectors. Some focus solely on the Internet; others survey a wider range of technology stocks; none are more than a few years old.

Journal Of Indexes

S&P 500 Funds: Money Flows Out Even While They Grow

As big stocks soar ever higher, more money is drawn to mutual funds that mimic the performance of the Standard & Poor's 500-stock index. That money spurs the index's stocks higher, drawing in even more cash.

Or so the theory goes.

But according to Vanguard Group, the fund company that runs the Vanguard 500 Index Fund, which replicates the S&P 500, money is really going out of such investments, not in.

Journal Of Indexes

The Case Against Indexing

Birinyi Associates studied the index fund phenomenon and found a lot to criticize in something so hugely successful.