From Bogleheads
Jump to navigation Jump to search

Split article?

There seems to be two themes to this article, the first part describes indexing methodology and the second part describes the implementation in index funds. Should the implementation parts be moved into the index fund article? --Peculiar Investor 08:17, 28 February 2014 (CST)

Inconsistency in reference

The Index characteristics section starts with "According to the CFA Institute" yet the reference at the end of line doesn't go to the CFA Institute. This seems incorrect, particularly since the current link goes to the BH forum and the posts have had admin action taken on them. A quick Google search of CFA Institute didn't provide a suitable replacement reference. Need help to resolve. --Peculiar Investor 10:44, 21 January 2015 (CST)

Yes check.png Done Found and updated reference. --Peculiar Investor 11:14, 21 January 2015 (CST)

Should Passive investing redirect here?

There currently is no passive investing article on the wiki. Should it be created as a redirect to this article? --Peculiar Investor 16:45, 22 January 2015 (CST)

I think there's a subtle difference on the use of "passive" versus "indexing" investing strategy. I don't see "passive investing" used in this context. For reference, take a look at the wording in SPIVA scorecards. It's not "active vs. passive" but "active vs. indexing". Check the website: Thought Leadership - SPIVA - S&P Dow Jones Indices and note the winning paper for 2013 is titled: A Case for Index Fund Portfolios. The term "index investing" is used consistently in the paper. --LadyGeek 19:09, 22 January 2015 (CST)
If they are not the same, then a passive management article is needed. Redirected passive investing to it, per Wikipedia's approach. --Peculiar Investor 20:18, 6 January 2016 (EST)
Here is Harold Evensky's definition of passive investing from:
  • Harold Evensky (1997). Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets. pp. 481.ISBN 978-0786304783

Passive management is the antithesis of active management. Its core philosophical tenet is that by brains, hard work, and technology, a manager cannot, over time and net of costs, beat the system; he can, however, beat other managers. Passive management is often assumed to be the equivalent of index management. It is not. Index management is a special subset of passive management. A passive manager may make active trading decisions. His decisions, however, are based on information currently available to all investors, not on an ability to read between the lines or predict future trends and events. Index management is passive management with the added constraint that the manager does not make active trading decisions.

— Evensky,Wealth Management, p.322

--Blbarnitz 06:28, 7 January 2016 (EST)

This discussion should be continued on Talk:Passive management as well as finiki:Talk:Passive investing. --LadyGeek 17:33, 7 January 2016 (EST)