Passive investing in index funds has gained a lot of steam in recent years. But top-performing fund manager David Winters says index-fund investing can actually be dangerous.
Index funds may sound boring, but in his latest New York Times column, Mark Hulbert offers some data that indicates index funds may, in the end, actually yield higher net returns than mutual funds and even hedge funds. Hulbert details a study performed by Mark Kritzman, president and CEO of Windham Capital Management and a professor at M.I.T. In the study (presented in the Feb. 1 issue of Economics & Portfolio Strategy), Kritzman developed an complex method to measure the performances of thee hypothetical investments over a 20-year period — a stock index fund that averaged a gross return of […]