It’s been 25 years since Professors Eugene Fama and Ken French explained why investors were likely, but not guaranteed, to earn better returns by favoring small cap and value stocks. Results since then have validated the researchers’ conclusions, but capturing those higher returns hasn’t always been easy.
The endowment performance of tiny Houghton College recently outpaced that of Harvard, which boasts the largest university endowment in the country. How did Houghton do it? By avoiding hedge funds and exotic alternatives, and instead embracing low-cost index funds.
It’s that time of year again, when the financial media issues its “Where to Invest Now” guides. As is often the case, following these experts’ advice in 2016 would have caused more pain than gain.
‘Tis the season for year-end mutual fund distributions. A quick review of how these work can help those who keep a close eye on their stockings from being caught by surprise.
The flood of money leaving actively-managed funds in favor of index funds signals that investors are giving up on stock picking. The Wall Street Journal’s Ann Tergesen and Jason Zweig explain why—superior performance, lower fees and simplicity.
Nevada’s $35 billion state pension plan has regularly outperformed some of the country’s largest and most sophisticated plans. The Wall Street Journal’s Timothy Martin explains how: By doing as little as possible, usually nothing. (subscription required)