We won best paper from S&P SPIVA worldwide!

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Rick Ferri
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We won best paper from S&P SPIVA worldwide!

Post by Rick Ferri »

From the press release:

NEW YORK, May 22, 2014 /PRNewswire/: Two researchers from the United States have claimed first prize (USD $30,000) for their study on the outperformance of diversified portfolios of index fund portfolios to portfolios of actively managed funds in S&P Dow Jones Indices' third annual SPIVA Awards program. Second prize (USD $15,000) in the SPIVA Awards program went to a team of researchers from universities across the U.S. for their study of explicit indexing.

The winning paper, "A Case of Index Fund Portfolios," published by Richard Ferri of Portfolio Solutions®, LLC and Alex Benke of Betterment, shows that an all index fund strategy in portfolios is favorable over portfolios of actively managed funds. Two distinct strategies were compared in the report: one that selects low-cost market-tracking index funds exclusively and a second that selects from actively managed funds that attempt to outperform the markets. The study revealed that the probability of outperformance using the simplest index fund portfolio started in the 80th percentile and increased over time. A broader portfolio holding multiple low-cost index funds began at close to the 90th percentile.

Link to paper: A Case For Index Fund Portfolios
Co-written by Rick Ferri, CFA, Portfolio Solutions and Alex Benke, CFP, Betterment
Published: June 2013

For the record, I donated my portion of the prize to the Wall Street Warfighters Foundation, a non-profit orginization with a mission to identify, develop, and place service disabled veterans in careers in the financial services industry. All contributions to the foundation are warmly welcome.

Rick Ferri

[An archived copy of the paper can be found here: WhitePaper.pdf --admin LadyGeek]
Last edited by Rick Ferri on Thu Mar 10, 2016 5:32 pm, edited 1 time in total.
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Toons
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Re: We won best paper from S&P SPIVA worldwide!

Post by Toons »

"For the record, I donated my portion of the prize to the Wall Street Warfighters Foundation, a non-profit orginization with a mission to identify, develop, and place service disabled veterans in careers in the financial services industry"

Superb,Exlempary!
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Re: We won best paper from S&P SPIVA worldwide!

Post by larryswedroe »

congratulations Rick, well done
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Re: We won best paper from S&P SPIVA worldwide!

Post by Grt2bOutdoors »

Great job Rick! Congratulations!
Excellent use of the proceeds. :beer
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matjen
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Re: We won best paper from S&P SPIVA worldwide!

Post by matjen »

Well deserved Rick! Congratulations!!!! :sharebeer
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Re: We won best paper from S&P SPIVA worldwide!

Post by cfs »

To Rick and his Team

Outstanding work, and please continue to Do Great Things. "Because of my integrity you uphold me and set me in your presence forever."

Thank you.
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Re: We won best paper from S&P SPIVA worldwide!

Post by Dale_G »

Terrific - and in keeping with what we have come to expect from you Rick. You have now set an even higher hurdle. :sharebeer

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Re: We won best paper from S&P SPIVA worldwide!

Post by Rob Bertram »

Congratulations and thank you!
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Re: We won best paper from S&P SPIVA worldwide!

Post by patriciamgr2 »

Congratulations on the honor and thank you so very much for your use of the prize proceeds. I appreciate all that you do for investors like us. Thanks!
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Re: We won best paper from S&P SPIVA worldwide!

Post by Tonen »

Good on ya Rick!
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Re: We won best paper from S&P SPIVA worldwide!

Post by pkcrafter »

Well deserved, the paper is excellent...a GEM.

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Re: We won best paper from S&P SPIVA worldwide!

Post by Kalo »

Nice going on the paper and the prize. Cool use of the proceeds too. That sounds like a very worthy cause.

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Re: We won best paper from S&P SPIVA worldwide!

Post by Buffetologist »

I agree nice job.

Does it concern you that you are donating the proceeds of your award to place disabled veterans in an industry that your truth-telling is putting out of business.
Haha. Just kidding.

Great job!
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Re: We won best paper from S&P SPIVA worldwide!

Post by asset_chaos »

Good paper, well deserved reward.
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Re: We won best paper from S&P SPIVA worldwide!

Post by Mel Lindauer »

Nice job, Rick. I used your paper when it first came out to show the active crowd over at Morningstar that the odds were severely stacked against them.

Your generosity continues. I don't know if forum members know that you've been donating the proceeds of your books to the Wounded Warriors, so I'm going to let them know about that, too.
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Re: We won best paper from S&P SPIVA worldwide!

Post by 6miths »

Sweet!
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Re: We won best paper from S&P SPIVA worldwide!

Post by ObliviousInvestor »

Congratulations! It's a great paper. I've referred readers to it on several occasions.
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Re: We won best paper from S&P SPIVA worldwide!

Post by Leeraar »

What is a SPIVA Award?

http://www.ssrn.com/update/fen/fenann/ann13227.html

Rick, very well done!

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Re: We won best paper from S&P SPIVA worldwide!

Post by Calm Man »

Rick Ferri wrote:From the press release:

NEW YORK, May 22, 2014 /PRNewswire/: Two researchers from the United States have claimed first prize (USD $30,000) for their study on the outperformance of diversified portfolios of index fund portfolios to portfolios of actively managed funds in S&P Dow Jones Indices' third annual SPIVA Awards program. Second prize (USD $15,000) in the SPIVA Awards program went to a team of researchers from universities across the U.S. for their study of explicit indexing.

The winning paper, "A Case of Index Fund Portfolios," published by Richard Ferri of Portfolio Solutions®, LLC and Alex Benke of Betterment, shows that an all index fund strategy in portfolios is favorable over portfolios of actively managed funds. Two distinct strategies were compared in the report: one that selects low-cost market-tracking index funds exclusively and a second that selects from actively managed funds that attempt to outperform the markets. The study revealed that the probability of outperformance using the simplest index fund portfolio started in the 80th percentile and increased over time. A broader portfolio holding multiple low-cost index funds began at close to the 90th percentile.

Link to paper: A Case For Index Fund Portfolios
Co-written by Rick Ferri, CFA, Portfolio Solutions and Alex Benke, CFP, Betterment
Published: June 2013

For the record, I donated my portion of the prize to the Wall Street Warfighters Foundation, a non-profit orginization with a mission to identify, develop, and place service disabled veterans in careers in the financial services industry. All contributions to the foundation are warmly welcome.

Rick Ferri
Rick, I applaud you on the award. But I applaud you more for donating the winnings to a worthy organization. I am a semi-retired consultant now and earmark a very large percentage of the consulting fees to autistic charities. For me it provides far more pleasure than anything I could get myself, especially when I see something that the money is actually used for. For the bogleheads who are not charitable, look into it, it is wonderful.
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Re: We won best paper from S&P SPIVA worldwide!

Post by IlliniDave »

Congrats, one of the few among the myriad papers that get linked on here I actually read. It was very good. I remember having some lively discussions on the forums over at M* not long after it first came out.
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Boglehead Rick Ferri

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Bogleheads:

This is BOGLEHEAD RICHARD A. FERRI, CFA

Respectfully.
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Re: We won best paper from S&P SPIVA worldwide!

Post by Rager1 »

Congratulations, Rick! You make me proud for all you do.

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Re: We won best paper from S&P SPIVA worldwide!

Post by tetractys »

Congratulations, you and any others involved certainly earned it! -- Tet
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Rick Ferri's gems.

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Re: We won best paper from S&P SPIVA worldwide!

Post by joe8d »

:thumbsup Rick.
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Re: We won best paper from S&P SPIVA worldwide!

Post by LadyGeek »

Congrats! :beer

Here's the official website: Thought Leadership - SPIVA - S&P Dow Jones Indices. Rick Ferri and Alex Benke are featured.

The wiki has some background info: SPIVA scorecards

For completeness, you can also see the 2nd place finishers (click on the Second Place tab).
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Re: We won best paper from S&P SPIVA worldwide!

Post by FrugalInvestor »

Nice job Rick! You make us all proud and perhaps a little smug.
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Re: We won best paper from S&P SPIVA worldwide!

Post by pennstater2005 »

What a great achievement!
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Re: We won best paper from S&P SPIVA worldwide!

Post by fishnskiguy »

Bravo Zulu.

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Re: We won best paper from S&P SPIVA worldwide!

Post by jimkinny »

Mel Lindauer wrote:Nice job, Rick. I used your paper when it first came out to show the active crowd over at Morningstar that the odds were severely stacked against them.

Your generosity continues. I don't know if forum members know that you've been donating the proceeds of your books to the Wounded Warriors, so I'm going to let them know about that, too.
Congratulations on the award. Good job.

Mel, thanks for letting us know of the donations from the books. I am doubly impressed.

Jim
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Rick Ferri on "Panel of Experts"

Post by Taylor Larimore »

Congratulations on the award. Good job.

Mel, thanks for letting us know of the donations from the books. I am doubly impressed.

Jim
Jim:

Rick is a long-time member on our Panel of Experts at Boglehead Conferences. Meet Rick in-person and you will be triply impressed.

Best wishes.
Taylor
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Re: We won best paper from S&P SPIVA worldwide!

Post by bondsr4me »

Congratulations Rick!
Well deserved....makes me proud to be a "Boglehead"!
Your work, as well as other "Bogleheads", serves us well.
Your use of the proceeds is admirable fo sure!
Sure wish you were here in PA...would be on your front steps waiting to get in.
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Re: We won best paper from S&P SPIVA worldwide!

Post by laughlinlvr »

Congratulations Rick. Thanks for all you do - for veterans, for Bogleheads and for individual investors.
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Re: We won best paper from S&P SPIVA worldwide!

Post by RNJ »

Congratulations - nice work!
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Re: We won best paper from S&P SPIVA worldwide!

Post by garlandwhizzer »

Congratulations on both counts, Rick, creating the winning research paper and what you did with the proceeds. Big time scores on both.

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Rick Ferri
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Re: We won best paper from S&P SPIVA worldwide!

Post by Rick Ferri »

Thank you all. It was quite a surprise.

I have been invited to join the current class of Wall Street Warfighters when they visit S&P in NY next week. I'm looking forward to it.

Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
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Re: We won best paper from S&P SPIVA worldwide!

Post by dharrythomas »

Rick,

Congratulations and thanks for what you do.

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Re: We won best paper from S&P SPIVA worldwide!

Post by Rodc »

Congratulations!

Well done.
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Re: We won best paper from S&P SPIVA worldwide!

Post by k66 »

A very interesting read, thanks to you Rick and Alex for producing this work and making it available.

Your PPM #1 (increased probability as a portfolio) is a really big deal! As you show, not only are individual index funds the better bet (as we already know), but as a collectively diversified group, they are even stronger and more robust than what the calculated aggregate would be.
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Re: We won best paper from S&P SPIVA worldwide!

Post by staythecourse »

Great now I have another paper to read!! :D

Congrats and expect nothing less from the author of one of my fav. investing books, "AAAA"!!

Good luck.
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