Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Fundamental Indexing debate in JOI
Old 03-15-2007, 01:34 PM   #1
Full time employment: Posting here.
Join Date: Oct 2003
Posts: 961
Fundamental Indexing debate in JOI

The new Journal of Indexes has some interesting articles/interviews with the likes of Bogle and Fama&French on the subject of fundamental indexing.

My fav is when the JOI asks F&F about Siegel and WidsomTree:

JoI: What do you think of the dividend weighting schemes created by WisdomTree and others?

Fama: That’s worse. Of all the measures you can sort by, that one (dividends) produces the weakest value premium.

French: To be fair, what Jeremy Siegel (one of the developers of the WisdomTree indexes) is doing is different. He’s not ignoring a huge academic literature and claiming he invented the idea of sorting stocks by dividends.

Fama: Well, I’m not so sure. He does claim this is a “financial revolution”. But Bill Sharpe was promoting the idea 20 years ago. And the reality is that only 22 percent of firms pay dividends. What do you do with the rest?
Ouch. I guess that's getting academically b**ched-slapped.

- Alec
ats5g is offline   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 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!


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
Weighting game: New 'lazy' portfolio using 'fundamental' ETFs sparks furor chinaco FIRE and Money 15 05-05-2007 05:12 PM
indexing bonds perinova FIRE and Money 17 12-01-2006 10:24 PM
Fundamental Indexing donheff FIRE and Money 1 09-29-2006 07:38 AM
Happy BD Indexing, thanks to one J. Bogle mickeyd FIRE and Money 0 08-31-2006 04:13 PM
indexing SWR to inflation or to valuation perinova FIRE and Money 16 05-15-2006 05:48 PM

» Quick Links

All times are GMT -6. The time now is 10:07 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.