Features and News

Pricing Index Options

Prior to expiration, option prices reflect an expectation about future index volatility, because volatility affects the chance that the index will move above or below the exercise price at expiration.

Features and News

Stabilizing Returns With Derivatives

Used judiciously, derivatives may help dampen risk and bring stability to portfolio returns. Author discusses use of a buy-write strategy.

Features and News

Are Mutual Fund Scandals a Boon for the ETF Industry?

The Spitzer investigation continues to provide fresh gunpowder for ETF marketers . . . but they've remained eerily silent.

Features and News

iShares Launches First TIPS Exchange-Traded Fund

The iShares Lehman TIPS Bond Fund (ticker: TIP) began trading on the New York Stock Exchange.

Features and News

U.S. Equity Index Benchmark Usage

A study by Russell Indexes indicates assets are flowing into its style benchmarks.

Features and News

Dow Jones Takes Over TRAC-X High Yield Indexes

Dow Jones Indexes inked a deal with Morgan Stanley and JPMorgan to take over the TRAC-X North America High Yield Index series.

Features and News

Careful with Asset Class Correlations

Correlation analysis is important to designing and implementing efficient portfolios. However, investors should be aware that correlations between asset classes are not static.

Features and News

What Next?

The best advice for most investors is to ignore all claims, from whatever the source, about any ability to outperform on a risk-adjusted based on stock-selection or market timing skills.