Smart Beta: No Alpha Here!

“Smart Beta” is all the rage right now, and is being relentlessly promoted by virtually every firm on Wall Street.  Unfortunately, as Elisabeth Kashner points out, “Whether you look at one-, three- or five-year performance, these 11 U.S. large-cap smart-beta funds have produced returns in line with their risks. No more, no less. Whether you Read more about Smart Beta: No Alpha Here![…]

Hard to Time Outperformance

Larry Swedroe correctly notes that, while the markets may not be perfectly efficient, they’re efficient in the only way that matters: “There are fewer active managers that outperform appropriate risk-adjusted benchmarks, after expenses, than would be randomly expected. In addition, there’s little to no evidence of persistence of performance beyond the randomly expected.” Read the Read more about Hard to Time Outperformance[…]

Smart Betas and Tourist Investors

Rick Ferri correctly notes: “Wall Street is always coming up with cunning new marketing techniques to attract tourist investors. These are less-sophisticated individual investors and advisors who are easily wowed by glitzy industry trends, only to abandon them when the strategy falls short of expectations.”  Read the full article >>

Alpha or Wealth?

This is a must-read article for any investor who pursues market-beating strategies.  It demonstrates how “beating the market” (even if it were possible to consistently do so) does not necessarily translate into more wealth or a higher level of confidence in attaining one’s most important financial goals. View the full article >>