| Description |
1 online resource (xxiii, 310 pages) : illustrations |
| Contents |
The Fundamental Index: A Better Way to Invest -- Contents -- Foreword -- Preface -- Chapter 1: Efficient Indexing for an Inefficient Market -- Evidence of Market Efficiency -- The Case for Indexing -- Evidence of Market Inefficiency -- Conclusion -- Chapter 2: Origins of the Fundamental Index Concept -- Origins of the Research Affiliates Fundamental Index (RAFI) -- A Series of Aha! Moments -- Research Affiliates Fundamental Index -- Fundamental Index Performance -- Concluding Thoughts: A Better Way to Invest -- Chapter 3: Investors' Greatest Errors -- Negative Alpha -- Practicing What We Preach -- Conclusion -- Chapter 4: The Virtues of Index Funds -- Appeal of Equity Investing -- Equity Investing Choices -- The One Guarantee in Investments-Cost Matters -- Index Fund Advantages -- Avoiding the Performance Game -- Concluding Point -- Chapter 5: 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 -- Chapter 6: 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 -- Chapter 7: Fundamental Index Performance in U.S. Stocks -- RAFI U.S. Large Company Performance -- Digging Deeper across Market Cycles -- Digging Deeper into Different Time Periods -- An Equal Comparison: Fundamental Index versus Equal Weighting -- Out-of-Sample Results: Small Companies -- Using the Fundamental Index with Style: Growth and Value Applications -- Narrowing the Focus -- Extending the Analysis Back in Time -- Conclusion |
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Chapter 8: Beyond Borders: Fundamental Index Performance in Global Markets -- Global Markets -- Multicountry Portfolios -- Emerging Markets -- Consistency Counts -- Concluding Lessons from the Global Markets -- Chapter 9: Has Theory Led the Profession Astray? -- Will the Real Active Strategy Please Step Forward? -- The Origins of Cap Weighting -- Validation of Cap Weighting by Theory -- 40 Years Later: Empirical Results of the CAPM -- Ockham's Razor Applied -- Concluding Comments: Theory and the Profession -- Chapter 10: 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 -- A Proof Statement in 2007 -- Conclusion -- Chapter 11: 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 -- Chapter 12: Why Trust the Fundamental Index Concept? -- Stock Logic -- The Present versus 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 versus the Crystal Ball -- Does the Fundamental Index Concept Work in Bonds? -- Conclusion -- Chapter 13: Finding Opportunity in a World of Lower Returns -- What Can We (Rationally) Expect from Our Investments? -- Forecasting Bond Returns -- Forecasting Stock Returns -- Investing in a Low-Return Environment -- The Outlook for Pricing Errors -- Could Pricing Errors Actually Increase? -- Conclusion -- Chapter 14: Using the Fundamental Index Strategy -- Asset Allocation and the Fundamental Index Strategy -- Should We Change Our Benchmark? -- Diversifying the Passive Allocation -- Different Markets, Different Investors, Different Needs -- Conclusion -- Appendix |
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Notes -- References -- Index |
| Summary |
Praise for the fundamental index. "The Fundamental Index® method is a controversial financial innovation in the field of passive investing, but this book confronts the whole range of controversy head on. The case for use of the Fundamental Index method and against cap-weighted indexes is uncommonly lucid, well illustrated, and attention-grabbing. You cannot reach a judgment on the Fundamental Index strategy, pro or con, without reading The Fundamental Index.". Peter L. Bernstein, author of Capital Ideas Evolving. "The Fundamental Index method is a financial innovation so logica |
| Analysis |
Fundamental Index |
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Research Affiliates Fundamental Index |
| Bibliography |
Includes bibliographical references (pages 295-298) and index |
| Notes |
Print version record |
| Subject |
Index mutual funds.
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Stocks -- Prices -- Mathematical models
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Portfolio management.
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BUSINESS & ECONOMICS -- Investments & Securities -- General.
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Index mutual funds
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Portfolio management
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Stocks -- Prices -- Mathematical models
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| Form |
Electronic book
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| Author |
Hsu, Jason C., 1974-
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West, John M. (John Michael), 1973-
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| ISBN |
9780470294130 |
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0470294132 |
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9781118045480 |
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1118045483 |
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