Fundamental Indexing for Corporate Bonds
On Monday, I took issue with the argument that cap-weighted bond indexes are fatally flawed. Rob Arnott, the creator of fundamental indexing, has argued that the classic model is “patently ridiculous. [...]
Are Bond Index Funds Stupid?
When Rob Arnott, the creator of fundamental indexing, spoke in Toronto last week, his presentation focused exclusively on equities. When he took questions at the end of his presentation, I asked him a [...]
Fundamental Indexing in the Real World
Earlier this week I discussed the promise of fundamental indexing. This strategy takes aim at the shortcomings of traditional cap-weighted indexes, which overweight growth stocks and are prone to bubb [...]
The Promise of Fundamental Indexing
Last Friday, I had the pleasure of attending a talk by Rob Arnott, the creator of the Research Affiliates Fundamental Indexes (RAFI). If you’re not familiar with fundamental indexing, here’s a primer. [...]
How to Track Down Tracking Error
How do you measure the performance of an index fund? That sounds like a simple question, but it’s one I think many investors still have trouble with. Otherwise I wouldn’t routinely get questions like, [...]
Currency Hedging in International Funds
Currency hedging can be confusing for investors who use index funds and ETFs that hold foreign stocks or bonds. The basic idea, which I have written about before, is not terribly hard to understand. I [...]
A DRIP in the Bucket
One of the downsides of using ETFs—as opposed to index mutual funds—is that dividends and interest are not automatically reinvested. Instead, they are paid in cash, where they often sit idly in your b [...]
Under the Hood: Vanguard Total International Stock (VXUS)
This post is part of a series called Under the Hood, where l take a detailed look at specific ETFs or index funds. The fund: Vanguard Total International Stock ETF (Nasdaq: VXUS) The index: The ETF tr [...]
How to Avoid Paying Other People’s Taxes
Before you go shopping for the Couch Potatoes on your holiday wish list, be aware that December can be a terrible time to buy ETFs. No, it's not because of all the last-minute shoppers pushing and sho [...]
Tax-Loss Selling with Index Funds: Part 2
In my previous post, I looked at the Canada Revenue Agency’s position on tax-loss selling with ETFs. According to the only CRA bulletin on the subject, if you sell an index fund or ETF and claim a cap [...]
