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Step 6: Style Drifters

Figure 6-7

solutIons style purIty Index funds are created according to specific criteria, and in accordance with an index, allowing for accurate tracking and prevention of style drift. Figure 6-8 shows the style purity of an S&P 500 Index Fund over a 36-year period. In contrast to the drift of the three previous funds, the index fund maintained relatively constant exposure to large growth and large value equities over the entire period.

Index Funds: The 12-Step Recovery Program for Active Investors  

This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...

Index Funds: The 12-Step Recovery Program for Active Investors  

This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...