The Fundamental Index: A Better Way to Invest
by Robert D. Arnott; Jason C. Hsu; John M. West; Foreword by: Harry M. Markowitz (University of New York)Format: eBook
Pub. Date: 2008-07-01
Publisher(s): Wiley
Availability: This title is currently not available.
Other versions by this Author
List Price: $29.95
Rent Book
Select for Price
New Book
We're Sorry
Sold Out
Used Book
We're Sorry
Sold Out
eBook
We're Sorry
Not Available
Summary
The Fundamental Index examines a new approach to indexing that can overcome the structural return drag created by traditional capitalization-based indexing strategies, and in so doing, enhance the performance of your portfolio. Throughout this book, Robert Arnott and his colleagues outline this breakthrough strategy and explain how it can be used to improve investment returns, typically at lower risk and lower cost than most conventional investments.
Table of Contents
| Foreword | |
| Preface | |
| Efficient Indexing for an Inefficient Market | |
| Evidence of Market Efficiency | |
| The Case for Indexing | |
| Evidence of Market Inefficiency | |
| Conclusion | |
| Origins of the Fundamental Index Concept | |
| The Origins of Research Affiliates Fundamental Index (RAFI) | |
| A Series of Aha! Moments | |
| Research Affiliates Fundamental | |
| Index Fundamental | |
| Index Performance | |
| Concluding Thoughts: A Better Way to Invest | |
| Investors Greatest Errors | |
| Negative Alpha | |
| Practicing What We Preach | |
| Conclusion | |
| The Virtues of Index Funds | |
| The Appeal of Equity Investing | |
| Equity Investing Choices | |
| The One Guarantee in Investments-Costs Matter | |
| Index Fund Advantages | |
| Avoiding the Performance Game | |
| Concluding Point | |
| The Index Fund's Achilles Heel | |
| Market Efficiency: Two Interpretations | |
| Constructing a Well-Functioning | |
| Index | |
| The Achilles Heel of Cap-Weighting | |
| The Problems with Equal Weighting | |
| Concluding Thoughts | |
| A Fundamental(ly) Better Index Building the Fundamental Index | |
| Adjustments for non-dividend-paying companies | |
| Why Multiple Measures of Company Size? | |
| Advantages of a Composite Measure | |
| An Index of the Broad Economy | |
| Capacity and Liquidity | |
| Reconstituting the Fundamental Index: Keeping Turnover Low | |
| Concluding Comments | |
| Fundamental Index Performance in U.S. Stocks | |
| RAFI US Large Company Performance | |
| Digging Deeper across Market Cycles | |
| Digging Deeper into Different Time Periods | |
| An Equal Comparison: Fundamental Index vs. Equal Weighting | |
| Out-of-Sample Results: Small Companies | |
| Using the Fundamental Index with Style: Growth and Value Applications | |
| Narrowing the Focus: NASDAQ | |
| Narrowing the Focus: REITs | |
| Narrowing the Focus: Sector Performance | |
| Extending the Analysis Back in Time | |
| Conclusion | |
| Beyond Borders: Fundamental Index Performance in Global Markets | |
| Fundamental Index Performance in Global Markets | |
| Multicountry Portfolios | |
| Emerging Markets | |
| Consistency Counts | |
| Concluding Comments: Lessons Learned From the Global Markets | |
| Has Theory Led the Profession Astray? | |
| Will the Real Active Strategy Please Step Forward? | |
| The Origins of Cap Weighting | |
| Apparent Validation of Cap Weighting by Theory | |
| Forty Years Later: Empirical Results of the CAPM | |
| Ockham's Razor Applied | |
| Concluding Comments: Theory and the Profession | |
| The Basic Criticism: Our Style and Size Tilt | |
| Merely a Value Tilt | |
| Small-Cap Bias | |
| Fama and French Factors | |
| Some Big Surprises in Small Companies | |
| Conclusion | |
| Other Common Critiques: Hits and Misses | |
| Mining the Data? | |
| Costs | |
| Is It an Index? | |
| Do We Know Which Stocks Are Overvalued? | |
| How Long Can It Last? | |
| Conclusion | |
| Why Trust the Fundamental Index Concept? | |
| Stock Logic | |
| The Present vs. the Future: How Often Is Wall Street Right? | |
| Why Does Wall Street Get It Wrong? | |
| Dynamic Style and Size Exposures: When Do We Want Value and Small Cap? | |
| Show Me the Numbers | |
| Fundamental Index Strategy vs. the Crystal Ball | |
| Does the Fundamental Index Concept work in Bonds? | |
| Conclusion | |
| The Future for the Fundamental Index: Secular Market Considerations | |
| What Can We (Rationally) Expect from Our Investments? | |
| Forecasting Bond Returns | |
| Forecasting Stock Returns | |
| The Fundamental Index Strategy in a Low-Return Environment | |
| The Outlook for Pricing Errors | |
| Could Pricing Errors Actually I | |
| Table of Contents provided by Publisher. All Rights Reserved. |
An electronic version of this book is available through VitalSource.
This book is viewable on PC, Mac, iPhone, iPad, iPod Touch, and most smartphones.
By purchasing, you will be able to view this book online, as well as download it, for the chosen number of days.
Digital License
You are licensing a digital product for a set duration. Durations are set forth in the product description, with "Lifetime" typically meaning five (5) years of online access and permanent download to a supported device. All licenses are non-transferable.
More details can be found here.
A downloadable version of this book is available through the eCampus Reader or compatible Adobe readers.
Applications are available on iOS, Android, PC, Mac, and Windows Mobile platforms.
Please view the compatibility matrix prior to purchase.