Archive for the ‘Index Funds’ Category

Mutual Fund Expenses Should Go Down And Not Up

Thursday, May 15th, 2008

I think it’s interesting that the mutual fund industry is one of the few industries that doesn’t adjust it’s cost structure for economies of scale. In manufacturing, the more of something you produce the less expensive it becomes. It’s called leverage, and because of machines, purchasing power, and technological advancement large ...

Index Funds Are A Commodity, and Checking Accounts Are Too

Friday, May 9th, 2008

Index funds are a commodity. Buy the one that is least expensive. I’m a big believer in marketing and the value of name brands. I love my New Balance running shoes, and I wouldn’t trade them in on a pair of Nike’s for anything (except perhaps a free pair on Nike’s!). I ...

Reasons Why I Like Index Funds

Saturday, May 3rd, 2008

Index funds seek to track a financial index, and therefore do not require an active management team to make buy and sell decisions. Although matching the performance of an index does still require some overhead expenses, these expenses are typically much lower than those of an actively managed fund. Likewise ...

Not All “Index” Funds Are The Same

Friday, May 2nd, 2008

Beware of wolves in sheeps’ clothing! Not all funds that call themselves index funds are the same. In the traditional sense, an index fund is a mutual fund that seeks to match the performance of an underlying financial index. Whether you’re looking to match the total US stock market return ...