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Index Funds Book
Index Funds: The 12-Step Program for Active Investors (Hardcover)

by Mark T Hebner
ISBN: 0-9768023-0-9




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Harry M. Markowitz explains Portfolio Theory: what it is and how it's used from a top-down model from the asset classes to the investments. He covers Standard Deviation, Variance, Correlation, and Covariance. Markowitz also explains what happened in 2008 with Modern Portfolio Theory. (39 Min.)

Harry M. Markowitz - Portfolio Theory and 2008

Mark covers historic recovery patterns and probability of future returns, the risks and returns that come with big government, the role of commodities in your investments, the pros and cons of inflation-hedging securities, and an investment strategy that has been highly successful historically. (92 Min.)

Mark T. Hebner - Big Losses, Big Government and Your Investments

Harry Markowitz gives an IFA Exclusive Presentation on Portfolio Theory Vs. Financial Engineering, and Their Roles in Financial Crises. Markowitz explains the difference between Portfolio Theory and Financial Engineering. Markowitz also covers Black Monday (October 19, 1987), Long Term Capital Management, and Now. (47 Min.)

Harry Markowitz - Portfolio Theory Vs. Financial Engineering, and Their Roles in Financial Crises

The first step on the index funds journey is to recognize active investor behavior. If all investors were lined up in a row, could the active investors be identified? Active investors actively engage in stock picking, time picking (market timing), manager picking, and style picking.

Step 1: Active Investors - Podcast Interview with Mark Hebner

Mark Hebner explains the Nobel Laureates. Mark suggests a higher power of non-biased information from academics who carefully analyze data and have that data peer reviewed before it is published. Mark identifies the five basic concepts of the Modern Portfolio Theory.

Step 2: Nobel Laureates - Podcast Interview with Mark Hebner

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A Rational Response to Irrational Market Anxiety
Mal-location of Capital
Wall Street: the other Las Vegas


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John Spence
John Spence

ETF Update and Complete Listing

John Spence
Thursday, August 24, 2000

Exchange-traded funds (ETFs) have continued their meteoric rise in popularity, with total assets in ETF securities exceeding $47 billion for the week ending 8/18/00, excluding Merrill Lynch's HOLDRs (Source: Wiesenberger).

Since ETFs incorporate some of the features of stocks, they offer unique advantages to fund investors. For example, unlike regular mutual funds, ETFs can be traded throughout the day, and can be sold short or bought on margin.

However, ETFs do not always trade at the net asset value of the holdings within the fund, and discounts and premiums can and do open up (compare market price to net asset value in below table). Of course, these fluctuations lead to arbitrage opportunities for managers and the opportunity to win out or get burned. Timely knowledge of the net asset value of the securities within a particular ETF is a crucial factor when it comes to managing ETFs.

The table below offers useful information about every ETF currently available. All of them are traded on AMEX.

 

Fund Name Ticker

Exp. Ratio (as of 7/21 2000)

1 mo (as of 8/18 2000) YTD (as of 8/18 2000) 1 yr (as 0f 8/18 2000) Total net assets ($ millions, as of 7/21 2000)

Share Mkt price (as of 8/18* 2000)

Share Net asset value (as of 8/18 2000)
Diamond Series Trust I
DIA
0.12
3.33
-3.30
0.64
2050.25
110.44
110.50
iShares Dow Jones US Basic Mtrls
IYM
0.60
n/a
n/a
n/a
8.61
35.76
36.03
iShares Dow Jones US Chemicals
IYD
0.60
n/a
n/a
n/a
16.98
39.28
39.33
iShares Dow Jones US Cons Cyclical
IYC
0.60
-4.17
n/a
n/a
15.66
60.34
60.57
iShares Dow Jones US Cons Non-Cycl
IYK
0.60
-1.47
n/a
n/a
12.51
41.97
41.90
iShares Dow Jones US Energy Sector
IYE
0.60
12.40
n/a
n/a
27.85
52.41
52.26
iShares Dow Jones US Financial Sct
IYF
0.60
6.74
n/a
n/a
98.96
81.17
81.39
iShares Dow Jones US Financial Srv
IYG
0.60
5.37
n/a
n/a
61.64
92.94
92.49
iShares Dow Jones US Healthcare
IYH
0.60
-2.41
n/a
n/a
18.98
62.13
61.95
iShares Dow Jones US Industrial
IYJ
0.60
-0.30
n/a
n/a
27.59
61.72
61.89
iShares Dow Jones US Internet
IYV
0.60
-9.26
n/a
n/a
92.71
70.09
70.14
iShares Dow Jones US Real Estate
IYR
0.60
n/a
n/a
n/a
18.23
n/a
n/a
iShares Dow Jones US Technology
IYW
0.60
-0.29
n/a
n/a
135.32
128.94
128.70
iShares Dow Jones US Telecom
IYZ
0.60
-14.15
n/a
n/a
51.81
52.50
52.79
iShares Dow Jones US Total Mkt
IYY
0.20
n/a
n/a
n/a
10.39
n/a
n/a
iShares Dow Jones US Utilities
IDU
0.60
11.49
n/a
n/a
28.30
78.53
78.53
iShares MSCI Australia Index
EWA
0.84
1.18
-2.83
3.72
64.73
10.75
10.58
iShares MSCI Austria Index
EWO
0.84
3.17
-2.26
-11.78
10.96
8.13
7.99
iShares MSCI Belgium Index
EWK
0.84
1.80
-12.40
-9.64
13.67
14.13
13.99
iShares MSCI Brazil Index
EWZ
0.99
n/a
n/a
n/a
35.25
n/a
n/a
iShares MSCI Canada Index
EWC
0.84
1.47
30.68
60.65
19.05
21.56
21.62
iShares MSCI France Index
EWQ
0.84
-1.54
1.36
26.65
95.87
28.00
28.05
iShares MSCI EMU
EZU
0.84
n/a
 


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