1990’s, shifting it away from its original allocation and altering its risk exposure for its investors. Similarly, Figure 6-6 illustrates the style drift of the Growth Fund of America, which is designated as a large growth fund. Note the lack of style consistency as the various indexes in the fund seem to move up and down like a roller coaster. Both of these funds did not stay true to their stated identity.
Style Drift on Steroids Normally, style drift refers to something like a value fund that dabbles in growth stocks or a large cap fund that drifts into small cap stocks. An article in the Wall Street Journal on May 2, 2013, “Bond Funds Running Low on…Bonds,” puts a whole new spin on style drift.
Published on Jun 1, 2015
This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...