For once, both active and passive managers may not be happy with a mainstream article on
the benefits of indexing.
In this case, Joe Light of the Wall Street Journal reports
on the rise of so-called "smart beta" ETFs that use
fundamentally- or factor-weighted indexes instead of traditional market capitalization-weighted ones. Referencing Burton Malkiel's criticism of active management, the
questions traditional indexing, too.
"It turns out that a blindfolded, dart-throwing monkey beats a regular market-capitalization-weighted index, too," the WSJ
The article includes shout-outs to PowerShares
, Research Affiliates
] and Vanguard
]. Yet one big fundamental
Neil Anderson, Managing Editor
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