"Index Fundamentalism Revisited"
Publication
, Journal Article
Reinker, KS; Tower, E
Published in: Journal of Portfolio Management
July 2003
Is there any justification for investing in managed mutual funds or are managed funds for suckers, as indexing advocates argue? We answer this question by looking at a long time span of real fund returns (26 years) for one specific company (Vanguard) that is notable for its low fees on managed funds. By creating synthetic portfolios— portfolios based on weighted averages of the assets of Vanguard’s mutual funds—we find that whether index funds or managed funds are the superior buy depends on the time span in question, but that managed funds almost always have a lower standard deviation of return than index funds.
Duke Scholars
Published In
Journal of Portfolio Management
Publication Date
July 2003
Start / End Page
31
Related Subject Headings
- Finance
- 1502 Banking, Finance and Investment
Citation
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Chicago
ICMJE
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Reinker, K. S., & Tower, E. (2003). "Index Fundamentalism Revisited". Journal of Portfolio Management, 31.
Reinker, Kenneth S., and E. Tower. “"Index Fundamentalism Revisited".” Journal of Portfolio Management, July 2003, 31.
Reinker KS, Tower E. "Index Fundamentalism Revisited". Journal of Portfolio Management. 2003 Jul;31.
Reinker, Kenneth S., and E. Tower. “"Index Fundamentalism Revisited".” Journal of Portfolio Management, July 2003, p. 31.
Reinker KS, Tower E. "Index Fundamentalism Revisited". Journal of Portfolio Management. 2003 Jul;31.
Published In
Journal of Portfolio Management
Publication Date
July 2003
Start / End Page
31
Related Subject Headings
- Finance
- 1502 Banking, Finance and Investment