Active Index Investing: Maximizing Portfolio Performance and by Steven A. Schoenfeld PDF

By Steven A. Schoenfeld

ISBN-10: 0471257079

ISBN-13: 9780471257073

For over 3 many years, indexing has turn into more and more authorised via either institutional and person investors.  Index benchmarks and funding items that song them were a driver within the transformation of funding method from artwork to technology. but traders’ figuring out of the sophistication of this burgeoning box has lagged the starting to be use of index products.

Active Index Investing is the definitive advisor to how indexes are developed, how index-based portfolios are controlled, and the way the world’s such a lot subtle traders use index-based suggestions to augment functionality, decrease expenditures and reduce the dangers of investing.

Active Index Investing offers a finished assessment of (1) the funding theories which are the basis of index dependent making an investment, (2) top practices in benchmark building, (3) the starting to be global of index-based funding cars, (4) state-of-the-art index portfolio administration techniq ues and (5) the myriad methods traders can and do catch the advantages of indexing.

Active Index Investing has a different layout that captures the perspectives and views of over forty of the funding industry’s top specialists and practitioners, whereas keeping a holistic view of this advanced material. as well as the Appendix and thesaurus in the publication, it good points an E-ppendix, on hand at www.IndexUniverse.com

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Additional resources for Active Index Investing: Maximizing Portfolio Performance and Minimizing Risk Through Global Index Strategies

Sample text

Part One focuses on the finance theory that is the foundation for indexbased investment and explores the enduring logic and accelerating sophistication of indexing. One of the most interesting elements in the growth of indexing has been the constant interplay between academia and practitioners. In fact, many indexing pioneers—past, present, and, likely, future— have blended careers in the ivory tower and the trenches of Wall Street. As background and perspective on some of the major milestones in the history of indexing, I have provided a time line of key developments in products and investment practice (see the table on page 12).

The use of index products and strategies almost always has an active element, and often, index-based products are the most efficient way to maximize return and minimize risk. As active benchmark decisions are not explicitly discussed in subsequent chapters, a short description follows here. Further explanation of the actual implementation of alternative benchmark structures can be found in Chapters 14 and 18. Indexing started as a way to achieve diversified, transparent, efficient core exposure to asset classes—initially domestic equity, and then international and global equity and fixed income.

But do it to match the characteristics of the index. And never put a bond in there that yields a little bit more. If you do that, surprise! It has more risk. ) Wiandt: What further innovations do you see coming to the industry? Do you think innovation is a good thing? Bogle: The total market index is by definition the perfect investment, and the S&P 500 is virtually as good. They cannot be improved on. They will give you virtually all of the market’s return, provided that the costs are minimal.

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Active Index Investing: Maximizing Portfolio Performance and Minimizing Risk Through Global Index Strategies by Steven A. Schoenfeld


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