Results for 'esg'
No more room at the factor zoo
It was apparently Professor John Cochrane of the University of Chicago who coined the term “zoo of factors” in his 2011 presidential address to the American Finance Association. Since then, the factor zoo has grown considerably. Several hundred risk factors have been identified which, it’s been claimed, have beaten the broader stock market over […]
The opportunity cost of choosing a “best buy” fund
By ROBIN POWELL There’s been good news and bad news for the UK’s largest investment platform Hargreaves Lansdown this week. The company reported an 11% in annual profit after a “surge” of new customers during the lockdown. Meanwhile, details emerged of a potential class action against Hargreaves for its role in the Neil […]
The one number that really matters
By NICK MAGGIULLI What is the most important number in personal finance? I used to think it was net worth, or possibly liquid net worth, but I have since come to the conclusion that these measures have some serious limitations. Net worth, for example, isn’t the best indicator of financial acumen because it doesn’t come […]
The drawbacks with ANTs (active non-transparent ETFs)
The fund management industry loves its product innovations. So does the financial media — not least because they provide something new to write about. But what are we to make of ANTs, the newest kid on the asset management block? Actively managed non-transparent ETFs, or ANTs, debuted in the US in April. They come with […]
Ten simple ways to improve your returns
Warren Buffett once said: “The business schools reward difficult complex behaviour more than simple behaviour, but simple behaviour is more effective.” One of the areas where this is absolutely true is investing. The financial industry and, to some extent, the financial media, have a vested interest in making investing more complex than it needs […]
The performance of active management during the COVID crisis
By LARRY SWEDROE Despite its well-documented, long-lasting, and persistent underperformance, the active management industry still controls about half of all assets under management. A possible explanation for its continued popularity is that investors are willing to tolerate underperformance because they believe that active funds outperform in bear markets, when outperformance is highly valued. […]
The legacy share class scandal
By ROBIN POWELL I had a nasty surprise the other day. I finally got round to reviewing our home entertainment package. It turns out we were stuck in a “legacy contract” which we first took out nine years ago. As a result, year after year, we’ve been paying up to twice as much […]
Is Vanguard blotting its copybook?
By ROBIN POWELL I’m told Apple is the most loved brand for people in my age category, closely followed by Amazon and Netflix. But for a brand that’s practically perfect in every way, how can you look past Vanguard? It ticks virtually every box for me. Transparent. Customer-focused. Mutually owned. And, of course, […]
