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Welcome to Index Fund Center. A Resource To Index Investment.
The Morale of Investing in IndexThere are many investment strategies. Most fameous ones are value investment and growth investment. Since early 1990s, there has been more and more research done to investigate whether actively managed portfolios have a meaningful profit margin when compared properly to the underlying indexes in the appropriate asset classes.A school of thought by Eugene Fama, et al, is that the stock market is efficient. All the information that can be known is absorbed into the price of a security quickly. Therefore, there is no advantage to actively manipulate the buying and selling. This hence becomes a strong support to invest in index funds. Is the market really efficient? If a business grows at 20% a year, but the stock price volatility is also 20% a year, your investment result will be lower than 20% a year. It will only approach that return if your holding period approaches infinity. This is the effect of random walk, in which the real return is the yield minus volatility. This I hope does not throw you off the cliff on index investing... The other issue with index investing is this -- true hardcore index investors should stick with broad market indexes, such as SP500 or Global Total Market indexes. Then you enjoy the benefit of the low turnover rate of an index. However, they often are not the best performers, sometimes for many years. Do you have the guts not persuing other "hotter" asset classes? Once you compromise and switch asset class, you see, you immediately throw the low turnover rate off the cliff. Tricky! Isn't it?
What is SP500 -- Cornerstone of Indexes
Mid-CapEqual Weighted SP500 -- A Twist of VolatilityMid-Cap Indexes -- Best Value in Town
Where is the Momentum?
Top Performing Stocks in SP100For one year periodFor 3 years period For 8 years period Top Performing Stocks in SP500For one year periodFor 3 years period For 8 years period Top Performing Stocks in SP400For one year periodFor 3 years period For 8 years period Top Performing Stocks in SP600For one year periodFor 3 years period For 8 years period Largest Money Managers in index group of:
Industry Survey: Leading companies in each industry.
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