October "Bogleheads On Investing" podcast with Dr. David Blitzer

[Rick Ferri]

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.

Your Host
Rick Ferri

[Stinky]

Loved Episode #1!

Thanks for hosting this podcast. Hope that it can go on for many years to come.

[Rick Ferri]

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)

[bradshaw1965]

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.

[car733]

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

[columbia]

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)

[LadyGeek]

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

[TravelGeek]

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.

[JoMoney]

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

[columbia]

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.

[Rick Ferri]

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.

Rick Ferri

[randomizer]

Thank you!

[MJW]

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

[Rick Ferri]

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

[CollegePrudens]

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).

[car733]

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!

[Rick Ferri]

Bumping up.

[Rowan Oak]

Very good. Thank you, Rick.

[Jiu Jitsu Fighter]

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?

[Rick Ferri]

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

[Ron Scott]

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?

[Rick Ferri]

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

[TheAccountant]

Love this podcast.

[ICH]

Very good work. Thank you

[ICH]

Is #3 out?

[columbia]

Any word on Tune In Radio having the podcast?

[Mel Lindauer]

Another great podcast, Rick. You're a well-prepared, natural host.