Nearly every financial adviser will tell you that foreign stocks should be part of a well-diversified portfolio. Yet, an analysis of the data shows that non-US (foreign) stocks as an asset class have underperformed the US market by a meaningful amount for more than 40 years, in addition to having higher risk. So, why do it?
There are many things for index fund investors to be thankful for. Here is a short list of thanks for index fund investors to remember when they’re sitting around the Thanksgiving Day table enjoying some of the benefits of investing wisely in index funds. 1) Jack Bogle: Vanguard Group founder and former CEO John C. [...]
Markets are not exchanges, exchanges are not indexes, and indexes are not investments. Yet, these words are often interchanged in discussions about index investing. I hope this will add some clarity to the discussion.
Every quarter since 2008, my company has recorded a quarterly conference call for clients and anyone else who wishes to listen. The call covers economic conditions, market trends, investment strategies, and current topics that are important at the time.
The debate between index fund investing and active fund investing is decades old. It really isn’t much of a debate, if you ask me. Historical data from Vanguard and S& P Dow Jones Indices shows that index funds have outperformed actively managed funds in every investment category over the long-term. But there’s another measure that isn’t discussed as frequently. It’s the payout.