European University Institute Library

The index revolution, why investors should join it now, Charles D. Ellis

eng

Includes bibliographical references and index

chartsillustrations

index present

non fiction

The index revolution

bibliography

949749835

Charles D. Ellis

why investors should join it now

Index funds and ETFs are in accelerating demand by active investors around the world. This short book explains why active investing no longer works and why astute investors are increasingly switching to indexing. While active investing was effective years ago, a compelling set of major change forces have transformed the stock markets of the world so active investing is no longer the main part of the solution and has become the main part of the problem. Ironically, the more smart, creative, experienced, hard working people are attracted by interesting work and high compensation to join the "beat the market" competition, the harder they make it for any investor (including themselves) to keep up. With new data, Charles Ellis shows that most active managers are falling short in every major market around the world. Indexing not only earns higher returns, as new data clearly shows, but also saves on operating costs and taxes. Also, indexing enables investors to focus on defining their own particular investing goals and the investment program that will get them there. This concise book pulls no punches as it explains in its easy-to-read, candid, and informing way why indexing works so well and how this strategy will continue to gain momentum with active investors. --, Provided by publisher

Over 50 years of learning to index -- My half-century odyssey -- The 10 good reasons to index -- The stock markets of the world have changed extraordinarily -- Indexing outperforms active investing -- Low fees are an important reason to index -- Indexing makes it much easier to focus on your most important investment decisions -- Your taxes are lower when you index -- Indexing saves operational costs -- Indexing makes most investment risks easier to live with -- Indexing avoids "manager risk" -- Indexing helps you avoid costly troubles with Mr Market -- You have much better things to do with your time -- Experts agree most investors should index -- Appendix A: How about "smart beta"? -- Appendix B: How to get started with indexing -- Appendix C: How index funds are managed