Larry Swedroe unpacks the newly released year-end 2017 SPIVA report and its look at active management’s underwhelming performance. Since 2002, S&P Dow Jones Indices has published its S&P Indices Versus Active (SPIVA) scorecards, which compare the performance of actively managed equity mutual funds to their appropriate index benchmarks. The 2017 report includes 15 years of data. Following …Read More.
Fixed Income Advisor Blerina Hysi talks through some of the benefits of well-structured bond ladders, including the ability to customize them to meet an investor’s unique needs and their implications for fixed income risk. Laddered bond portfolios can be customized to meet each investor’s unique needs. Plus, they help reduce the risk associated with investing …Read More.
Wealth Advisor Bill Morgan shares some ways to implement efficient tax strategies as you work your way toward your financial goals. Just hearing the word “taxes” can cause anxiety. After all, taxes are often among the most significant expenses you will face. However, William Morgan, a longtime CPA and a wealth advisor with Buckingham Strategic …Read More.
5 things to do to make sure your life insurance planning is on track. So much of the maintenance of our personal finances falls into the category of “boring, but important.” But when it comes to life insurance, our subconscious resistance to the topic is further compounded because, unlike retirement or career planning, your pot …Read More.
Larry Swedroe explains why active bond fund managers not only fail to outperform, but may also offer investors only the illusion of portfolio diversification. There is a myth that active bond fund managers want and need you to believe. It goes something like this: “Sure, active stock picking isn’t likely to work, but in fixed …Read More.
Does it pay to be active in fixed-income markets? To help answer that question, Martin Rohleder, chair of Finance and Banking at the University of Augsburg, examined the performance of active fund managers in his December 2017 study, “Bond Fund Performance: Does Management Activity Pay?” Study Results His data set included more than 600 corporate …Read More.
Revisit some tools for dealing with the financial and emotional impact of unpredictable ups and downs. “As you can see, we’re experiencing rough air at the moment. But as a reminder, we can’t predict rough air,” said the Delta airline pilot ferrying me from St. Louis to Charleston (via Atlanta—always Atlanta), “so please keep your seatbelts on whenever you …Read More.
Dips in the stock market over the last few days jolted a lot of investors. But, volatility is normal, and the best course of action right now is simply to do nothing. The past two years have seen an unusually low level of volatility in the stock market. That can lead to complacency. Last week, …Read More.
The latest SPIVA scorecard is out, and results show that persistence in mutual fund performance beyond the randomly expected remains out of reach for active managers. Since 2002, S&P Dow Jones Indices has published its biannual Indices Versus Active (SPIVA) reports, which compare the performance of actively managed equity funds to their appropriate index benchmarks. It …Read More.
Don’t rely on some commercial to ensure your financial advisor is acting in your best interest. Only work with a full-time fiduciary who puts you at the center of the planning. “I’m calling it — this is an Apple commercial,” said my 14-year-old son, about halfway into the visually stunning emotional appeal for educational experimentation …Read More.
With 2017 now done and gone, Larry Swedroe tallies how many of last year’s “sure thing” financial predictions actually came to pass. At the start of 2017, I compiled a list of predictions that gurus had made for the upcoming year, along with some items I heard frequently from investors, for a sort of consensus …Read More.