A few years ago, one of my friends asked me to meet with his father to discuss his portfolio. He’d been managing his own portfolio for the last 20 years or so, and wanted some advice. He’s kindly agreed to me sharing his story for this article, but for the sake of privacy I’ve changed …
If you’re an investor based in the UK, you’ve probably heard of Vanguard. They’re a hugely popular fund manager, and offer a slew of attractively priced, predominantly passive, funds for investors to choose from on their platform. But with so much choice comes some tricky decisions. Which fund, or funds, should you choose? Which is …
The best Vanguard passive index tracker funds for UK investors Read More »
To those who have made it to the conclusion of this series, I salute you. We’ve covered a lot of ground in the last eight posts, but hopefully now you’ve reached the end you have a more evidence-based opinion on why it’s unlikely that passive investing causes bubbles. I appreciate there’s been a lot of …
A summary: Is passive investing causing a bubble? Read More »
This is the eighth part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, which asks the question, “Where are all the outperforming active managers?”, click here. — “Every morning in Africa, a gazelle wakes up, it knows it must outrun the fastest lion …
Why passive investing is increasing market efficiency Read More »
This is the seventh part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on whether passive investing is causing large stocks to get even larger, click here. — If passives were distorting prices, if dispersion was reducing, and if equity concentration was increasing, …
Where are all the outperforming active managers? Read More »
This is the sixth part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on whether passive investing is making the market more concentrated, click here. — Looking at the behaviour of the largest stocks in the world can offer us some interesting insights …
This is the fifth part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on whether passive investing causes market crashes click here. — “Last year was a particularly narrow year for the stock market.” If you’ve ever read a market commentary from your …
Is passive investing making the market more concentrated? Read More »
This is the fourth part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on whether passive investing is setting prices, click here. — Let’s assume for a moment that there is a relationship between indexing and market crashes. Indexing, for whatever reasons, increases …
This is the third part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on how much of the market is passively invested, click here. — In the previous section we looked at whether enough of the market was invested in passives to cause …
This is the second part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the first part, on Sharpe’ Arithmetic of Active Management, click here. — For any investment strategy to distort the market, it must be big. Very big. And, despite all the clamour around the …
