Just How Narrow is This Market? Two Visualizations to Illustrate the Importance of Good Active Management

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Most stocks are down since the global equity markets peaked on 5/21/2015 (this goes without saying) and most stocks are down a lot. This puts a premium on solid active management and stock picking. But the sheer numbers are striking. Of the 2885 companies in our GKCI All Country World Index, fully 2383 (or 83%) of them […]

On Why Emerging Market Funds Are Ill Equipped to Capitalize on a Rebalancing China

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We’ve hashed out the arguments for a persistently slowing China in this blog many times, so we won’t go there again today. Instead, we want to focus on a different aspect of the slowing China reality: the fact that most investment products that focus on emerging markets are overweight exactly the wrong economic sectors. In […]

White paper: Smart Beta 2.0, A Disruptive Innovation

There is a new battlefront in the money management business. New smart beta ETFs are entering the market to compete against actively managed mutual funds. These funds will be formidable competition, offering the possibility of superior performance — traditionally the province only of actively managed funds — lower expense ratios and other advantages. As with every […]

Unveiling the Key to Mutual Fund Outperformance, and it has Nothing to do with Fees!

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It’s become almost common knowledge these days that the key to building a portfolio of outperforming mutual funds or ETFs is to simply pick the lowest cost option available in the categories to which the investor wants exposure. In this article we’ll offer a slightly different take, that the real key to finding outperforming mutual […]

How Exposed is Your Developed Markets ETF to Chinese Slowing?

Many investors in ETFs that focus on developed market stocks may be more exposed to slowing Chinese and emerging market growth than they realize. China and other emerging markets have become a larger and larger driver of global growth, but their slowing growth rates affect some economic sectors much more than others. Why is this […]