Welcome to the Bogleheads® wiki, a collaborative undertaking by members of the Bogleheads Community. This wiki is a reference resource for investors. Bogleheads emphasize starting early, living below one's means, regular saving, broad diversification, and sticking to one's investment plan.
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An index fund is a fund that pools investors capital for the purpose of investing in securities, typically a mutual fund or exchange-traded fund (ETF), that aims to replicate the movements of an index of a specific financial market.
A well-managed index fund provides investors with a simple way to access such advantages as low costs, improved tax efficiency, style consistency and reduced manager risk. Investors should be mindful that not all index funds are low cost and that some indexes can be exploited by active investors when the indexes periodically reconstitute.
The key measure for accessing an index fund's efficiency is how well it tracks its benchmark index. (more...)
This week in financial history
- 1852 - A group of Toronto businessmen met on October 24, 1852 with the intention of forming an "Association of Brokers". The association created that day established the framework for the Toronto Stock Exchange. Source: TMX Group History
- 1929 - October 24, 1929 became known as "Black Thursday", the start of the 1929 US stock market crash. Source: American Experience, A Selected Wall Street Chronology
- 1923 - The Standard Statistics Company (the forerunner of Standard & Poors) created an index of 233 US companies, computed weekly. Source: H. M. Gartley,"Profits in the Stock Market ", p.54.
- 1861 - The Toronto Stock Exchange (TSX) was created when 24 men met at the Masonic Hall in Toronto and passed a resolution. Source: History Of The Toronto Stock Exchange
- 1923 - The greatest U.S. bull market of the 20th century began after the Dow Jones Industrial Average closed the day near 86. It lasted nearly six years and lifted stocks by 345% until the Dow hit 381. Then, beginning in 1929, the Great Crash pulled stocks down by 89%, erasing all these gains. Source:The Great Crash of 1929, Some key dates, Adrian Mastracci, Financial Post, October 24,2011.
- 1997 - The Dow Jones Industrial Average suffered its biggest one-day point drop in history Monday, prompting officials to take the unprecedented step of closing markets early. Source: U.S. stocks whipped by losses - Oct. 27, 1997
- 1994 - The S&P Small Cap 600 index was launched on this date. The S&P SmallCap 600 measures the small-cap segment of the U.S. equity market Source: S&P Small Cap 600 Index, factbook
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