Index Funds

  • 21 Oct
    Passive or Active Funds? Neither… Sven Has A Better Option For You

    Passive or Active Funds? Neither… Sven Has A Better Option For You

    Whenever you find yourself on the side of the majority, it is time to pause and reflect. – Mark Twain.

    • The biggest market risk comes from money flows. Everything is good while more money is being invested, but withdrawals will create forced asset sales and another bear market.
    • In the last 10 years, 27% of actively managed funds have outperformed the market, but you can increase your chances by choosing a third option.

    Introduction

    In the everlasting debate between passive and active investing, passive investing is currently winning. More money is flowing into passive than actively invested funds, and many celebrate victory and the death of stock pickers. Stock market movements are influenced by money flows and if more money flows into passive funds, they will clearly outperform the competition.

    In today’s article, we’ll take a look at what is going on in the world of actively and passively managed funds, and will discuss a third option. An option that’s cheaper and one where your returns don’t depend on money market flows all that much. More →

  • 30 Sep
    Index Funds: It’s Time To Stop & Reflect

    Index Funds: It’s Time To Stop & Reflect

    • Thinking for yourself and not doing something just because everybody else is doing it can get you far, especially in investing.
    • Equally weighted indexes have outperformed market capitalization weighed ones.
    • The solution is to look for common sense in investing and to look at valuations.

    Introduction

    Mutual funds and ETFs that track indices are very popular these days. The prevailing attitude is that only a handful of active investment managers can consistently beat the market and therefore it is best to just invest in the whole market. Investing in the whole market means buying a small piece of every company, or at least that is how it should be. In this article we’ll explain the biases behind index investing. More →

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