Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Interesting Index vs Managed Fund Study results
Old 01-02-2007, 12:44 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,883
Interesting Index vs Managed Fund Study results

These academic studies seem to crop up at least annually. I generally appreciate the work and analysis that is put into the study and find it beneficial to my general understanding of the dynamics of the subject matter.


Quote:
Through examination of current and survivor-bias-minimized fund data, as well as other academic studies on this issue, we find that index management outperformed active management in most asset classes.

Surprisingly, index management outperformed active management in the Small-Cap Value and Small-Cap Growth asset classes—precisely the asset classes where one would expect active management to outperform.
In the areas where active management outperformed index management, there were signs that this trend may be nearing an end. For example, active management in Mid-Cap Value and Small-Cap Blend outperformed index management over longer periods of five and ten years, but underperformed index management in near-term one-year or three-year periods.
As index funds can periodically be unsuccessful in replicating their respective indices, we also compared the active manager universe to the Standard & Poor's Blend and S&P/Barra Growth and Value indices. The S&P indices outperformed the majority of actively managed funds in all U.S. asset classes, including Mid-Cap Value and Small-Cap Blend.
Finally, we reviewed academic studies that examined the "persistence" of investment manager performance. Often, persistence studies examine active manager's ability to generate consistent (or persistent) performance. While most of these studies found some evidence of persistence, it is important to note that several of these studies found that the persistence phenomenon was mainly due to the persistent underperformance of the lowest returning funds.
http://www.fpanet.org/journal/articl...nderforprint=1
__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Interesting Index vs Managed Fund Study results
Old 01-02-2007, 08:06 PM   #2
Full time employment: Posting here.
 
Join Date: Sep 2006
Posts: 678
Re: Interesting Index vs Managed Fund Study results

Mickeyd, thank you for posting this study. This is information that you won't get from the financial industry (with the exception of Vanguard).
__________________

__________________
JustCurious is offline   Reply With Quote
Re: Interesting Index vs Managed Fund Study results
Old 01-02-2007, 08:19 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Re: Interesting Index vs Managed Fund Study results

Quote:
Originally Posted by JustCurious
Mickeyd, thank you for posting this study. This is information that you won't get from the financial industry (with the exception of Vanguard).
Really? It was posted on the financial planners of america website........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Scot Burns article today on Index vs Managed.. Cut-Throat FIRE and Money 22 10-06-2004 04:18 PM
Recommended Low Cost Index Fund Tommy_Dolitte FIRE and Money 27 10-04-2004 05:53 PM
Balanced Index Investing? charlie FIRE and Money 17 04-28-2004 01:39 PM
S&P 500 Asset Class question Cut-Throat FIRE and Money 1 12-30-2003 08:54 AM
Vanguard Index Funds Moving From S&P To MSCI BigMoneyJim Other topics 5 05-18-2003 04:21 AM

 

 
All times are GMT -6. The time now is 02:06 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.