Mr. Ellis’s best-known work is Winning the Loser’s Game, a book that had a big impact on me when I was beginning my education on index investing. After spending decades as an analyst and consultant for pension and endowment funds, here was Ellis arguing that individuals—and even many institutional investors—would be better off simply using index funds. And while that seems like a familiar argument today, Ellis first made it some 42 years ago, in a hugely influential article called The Loser’s Game. That paper appeared in The Financial Analyst’s Journal in the summer of 1975, a few months before John Bogle launched the first index fund at Vanguard.
In our interview, Mr. Ellis and I discuss his latest book, The Index Revolution, which looks back over his long career and concludes that, alas, things haven’t changed very much. The financial industry still behaves as though the data in favour of indexing doesn’t exist—or at least doesn’t apply to them.