October Bogleheads On Investing Podcast with Dr. David Blitzer

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Rick Ferri
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October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Rick Ferri » Fri Oct 05, 2018 2:56 pm

Bogleheads On Investing: Episode #2 with Dr. David Blitzer is now available. Check with iTunes or other podcast providers, or click below:

Bogleheads On Investing: Episode 002

Episode 2 of Bogleheads on Investing features an insightful interview with Dr. David Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices (S&P DJI) with overall responsibility for index security selection, as well as index analysis and management.

In this episode, Dr. Blitzer discusses how S&P and Dow Jones came together under one name to become S&P Dow Jones Indices. He talks about the way securities are selected for the Dow Jones Industrial Average and S&P 500, and how stocks are categorized based on Global Industry Classification Standard (GICS). Dr. Blitzer also explores how the indexing industry changed as index investing became popular. Last, he comments on the difficulies active managers have in outperforming S&P Dow Jones Indices.

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Last edited by Rick Ferri on Fri Oct 05, 2018 6:26 pm, edited 2 times in total.
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Re: Bogleheads On Investing Podcast: Episode #2 with Dr. David Blitzer

Post by Stinky » Fri Oct 05, 2018 4:16 pm

Loved Episode #1!

Thanks for hosting this podcast. Hope that it can go on for many years to come.
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Rick Ferri » Fri Oct 05, 2018 6:38 pm

Future guests who have agreed to be interviewed. Presented in no particular order:

Tim Buckley (CEO Vanguard)
Jonathan Clements (Humble Dollar)
Christine Benz (Morningstar)
Alan Roth (Wealth Logic)
Bill Bernstein (Efficient Frontier)
Gus Sauter (Vanguard - Retired)
Wes Gray (Alpha Architect)
Mel Lindauer ( Bogleheads)
Dan Egan (Betterment)
Joel Dickson (Vanguard)
Jason Zweig (WSJ - TBD)
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by bradshaw1965 » Fri Oct 05, 2018 11:11 pm

Rick Ferri wrote:
Fri Oct 05, 2018 6:38 pm
Future guests who have agreed to be interviewed. Presented in no particular order:

Tim Buckley (CEO Vanguard)
Jonathan Clements (Humble Dollar)
Christine Benz (Morningstar)
Allan Roth (Wealth Logic)
Bill Bernstein (Efficient Frontier)
Gus Sauter (Vanguard - Retired)
Wes Gray (Alpha Architect)
Mel Lindauer ( Bogleheads)
Dan Egan (Betterment)
Joel Dickson (Vanguard)
Jason Zweig (WSJ - TBD)
Great lineup, thanks for this.

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by car733 » Sat Oct 06, 2018 8:56 am

What do you think about posting a thread with the upcoming guest so users can submit questions?

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by columbia » Sat Oct 06, 2018 9:00 am

Rick Ferri wrote:
Fri Oct 05, 2018 6:38 pm
Future guests who have agreed to be interviewed. Presented in no particular order:

Tim Buckley (CEO Vanguard)
Jonathan Clements (Humble Dollar)
Christine Benz (Morningstar)
Allan Roth (Wealth Logic)
Bill Bernstein (Efficient Frontier)
Gus Sauter (Vanguard - Retired)
Wes Gray (Alpha Architect)
Mel Lindauer ( Bogleheads)
Dan Egan (Betterment)
Joel Dickson (Vanguard)
Jason Zweig (WSJ - TBD)


:beer

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by LadyGeek » Sat Oct 06, 2018 11:20 am

Thanks, Rick.

My Android podcast catcher, Castbox, can find the feed in its search box. I have subscribed and will listen to the podcast this week.

The wiki is monitoring the RSS feed. See: News and blogs and note that our blog has posted about the new podcast.

Direct link: Bogleheads On Investing: Episode 002 – Special Guest Dr. David Blitzer, hosted by Rick Ferri | Financial Page
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by TravelGeek » Sat Oct 06, 2018 11:35 am

I listened to the 2nd episode on the way home from the BH conference and learned a lot about indexes. Thank you for providing inflight education. :)

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by JoMoney » Sat Oct 06, 2018 12:00 pm

Another great episode!

Dr. Blitzer mentioned a couple times how the index beats 3/5ths or roughly 60% of active funds every year. I keep thinking that number misses the impact of the consistency of doing that year-after-year ... over a multi-year period that turns into beating 80-90% of the funds
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by columbia » Sat Oct 06, 2018 12:28 pm

The conversation about varying levels of indexing across different countries was interesting. I do wonder how that - if at all - affects the ability of active managers to “profit” (ie beat the market) from said conditions.

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Rick Ferri » Sat Oct 06, 2018 4:52 pm

car733 wrote:
Sat Oct 06, 2018 8:56 am
What do you think about posting a thread with the upcoming guest so users can submit questions?
I will do that and did it with Jack Bogle. David Blitzer is under tight compliance control due to the sensitive nature of his job, so I didn't ask for questions.

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by randomizer » Sat Oct 06, 2018 4:55 pm

Thank you!
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by MJW » Sat Oct 06, 2018 4:57 pm

Rick - On another note, is there an ETA for when your new website will be ready?

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Rick Ferri » Sat Oct 06, 2018 5:12 pm

ETA for Core-4 Investing on Core-4.com is October 30.

The framework will be up by then and add content over time. All information on the site will be free.

Thanks for asking.

Rick
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by CollegePrudens » Sat Oct 06, 2018 9:09 pm

Nice job Rick. I enjoyed both the episodes. The Blitzer interview provided good insights into the sausage making of indices.

Keep up the good work!

(I left a rating ofcourse).
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by car733 » Sun Oct 07, 2018 12:10 am

Rick Ferri wrote:
Sat Oct 06, 2018 4:52 pm
I will do that and did it with Jack Bogle. David Blitzer is under tight compliance control due to the sensitive nature of his job, so I didn't ask for questions.
Thanks!

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Rick Ferri » Tue Oct 09, 2018 12:36 pm

Bumping up.
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Rowan Oak » Thu Oct 11, 2018 7:20 pm

Very good. Thank you, Rick.
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Jiu Jitsu Fighter » Fri Oct 12, 2018 12:09 am

bradshaw1965 wrote:
Fri Oct 05, 2018 11:11 pm
Rick Ferri wrote:
Fri Oct 05, 2018 6:38 pm
Future guests who have agreed to be interviewed. Presented in no particular order:

Tim Buckley (CEO Vanguard)
Jonathan Clements (Humble Dollar)
Christine Benz (Morningstar)
Allan Roth (Wealth Logic)
Bill Bernstein (Efficient Frontier)
Gus Sauter (Vanguard - Retired)
Wes Gray (Alpha Architect)
Mel Lindauer ( Bogleheads)
Dan Egan (Betterment)
Joel Dickson (Vanguard)
Jason Zweig (WSJ - TBD)
Great lineup, thanks for this.
It is a great lineup for sure. What about adding Mr. Swedroe? Any chance at a powwow between Asness and Arnott?

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Rick Ferri » Fri Oct 12, 2018 8:11 pm

It is a great lineup for sure. What about adding Mr. Swedroe? Any chance at a powwow between Asness and Arnott?
It’s all doable.

Rick
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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Ron Scott » Sun Oct 14, 2018 8:12 am

Rick Ferri wrote:
Fri Oct 05, 2018 2:56 pm

In this episode, Dr. Blitzer discusses how S&P and Dow Jones came together under one name to become S&P Dow Jones Indices. He talks about the way securities are selected for the Dow Jones Industrial Average and S&P 500, and how stocks are categorized based on Global Industry Classification Standard (GICS). Dr. Blitzer also explores how the indexing industry changed as index investing became popular. Last, he comments on the difficulies active managers have in outperforming S&P Dow Jones Indices.
Rick,

Two questions:

1. You correctly noted some growing confusion as fund managers use the term "index funds" to refer to both broadly diversified funds as well as thematic/strategic funds, essentially actively managed funds, like sectors, value, growth, etc. Insteading of trying to come up with a term to separate them (which will likely be adopted by the active managers to further obfuscate) why not just label them specifically, like TSM-cap weighted, S&P 500, etc.?

2. What is your view of where institutions (corporations et al) are headed in regard to TSM vs. active management of their equity portfolios?
Retirement is a game best played by those prepared for more volatility in the future than has been seen in the past. Preparing for financial challenges is more fruitful than trying to predict them.

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by Rick Ferri » Sun Oct 14, 2018 5:22 pm

Ron Scott wrote:
Sun Oct 14, 2018 8:12 am
Rick Ferri wrote:
Fri Oct 05, 2018 2:56 pm

In this episode, Dr. Blitzer discusses how S&P and Dow Jones came together under one name to become S&P Dow Jones Indices. He talks about the way securities are selected for the Dow Jones Industrial Average and S&P 500, and how stocks are categorized based on Global Industry Classification Standard (GICS). Dr. Blitzer also explores how the indexing industry changed as index investing became popular. Last, he comments on the difficulies active managers have in outperforming S&P Dow Jones Indices.
Rick,

Two questions:

1. You correctly noted some growing confusion as fund managers use the term "index funds" to refer to both broadly diversified funds as well as thematic/strategic funds, essentially actively managed funds, like sectors, value, growth, etc. Insteading of trying to come up with a term to separate them (which will likely be adopted by the active managers to further obfuscate) why not just label them specifically, like TSM-cap weighted, S&P 500, etc.?
TSM-cap weighted, S&P 500, etc. would be each fund's objective rather than the broad investment strategy called "indexing" or "benchmarking".
What is your view of where institutions (corporations et al) are headed in regard to TSM vs. active management of their equity portfolios?
The data confirms that TSM is the largest asset gathering strategy among all fund strategies. A lot of this is institutional money. So, they continue to buy into the concept.

Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by TheAccountant » Sun Oct 14, 2018 6:17 pm

Love this podcast.

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Re: October Bogleheads On Investing Podcast with Dr. David Blitzer

Post by ICH » Tue Oct 16, 2018 11:27 am

Very good work. Thank you

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