Meet Index Investor Andrew Hallam
Monday, Nov. 24, 2014 7:15PM EST
In 1973, three years before Vanguard created its first index fund, Burton Malkiel wrote the classic book, A Random Walk Down Wall Street. It ruffled plenty of Wall Street suits. The Princeton economics professor argued that actively managed mutual funds were a waste of money. He said most of them perform poorly compared to their index benchmarks. So when Vanguard created the first index fund in 1976, Mr. Malkiel became one of the firm’s biggest cheerleaders.More »
Tuesday, Oct. 28, 2014 6:57PM EDT
Some mutual funds perform like penguins in pigeon races. If you’re stuck with a frosty portfolio, it may not be your adviser’s fault. Nor is it necessarily the fault of those running your mutual funds. So whom can we blame? High hidden fees are the usual suspects.More »
Tuesday, Sep. 30, 2014 4:13PM EDT
Quick question: Which are Canada’s hottest index funds? Considering the stampede into Vanguard Canada’s ETFs since their 2011 debut, many would give them the nod. In fewer than two years, their assets under management exceeded $1-billion.More »
Tuesday, Aug. 19, 2014 5:17PM EDT
The U.S. stock market has risen 47 per cent in less than two years. The international market is up more than 33 per cent and the Canadian index has risen about 25 per cent. If you’re adding money to the markets, you should be disappointed. I am. I prefer to see sinking markets.More »
Wednesday, Aug. 06, 2014 4:33PM EDT
Six years ago, Montreal-based financial adviser Sonny Wadera packed his bags for Texas. He wasn’t giving up on the investment business for a stake in a Lone Star oil operation. He was simply going back to school for a couple of days. His goal was to build better portfolios for clients at Kelson Financial using indexes created by Dimensional Fund Advisors (DFA).More »
Thursday, Jul. 17, 2014 7:39PM EDT
If you struck up a midweek conversation with Billy and Akaisha Kaderli, you might peg them as early retirees. And you would be right. The energetic 61-year-olds share the glow of a couple freed from the rat race. But a few things make them different. For starters, they have been retired for 23 years. They also travel the globe.More »
Wednesday, Jun. 11, 2014 8:05PM EDT
Few teachers upset their students on purpose. But I do it every semester.
“Broad index funds comprise every stock in a given market,” I explain to my high-school personal finance class. “Nobody trades them. Actively managed funds, on the other hand, have managers at the helm, sniffing out the very best stocks.”More »
Tuesday, May. 13, 2014 4:24PM EDT
There’s little denying that folks regularly consuming leafy green vegetables are healthier than those stuffing themselves daily with burgers and fries. Sure, you might find someone who shuns vegetables, dines exclusively on Big Macs and lives to 100. But that doesn’t mean you should give it a try.More »
Tuesday, Apr. 29, 2014 7:27PM EDT
It takes chutzpah to challenge index funds if you’re an actively managed mutual fund company. Indexes are cheap. As such, their long-term performances outrun most active funds. IA Clarington Investments Inc. suggest their funds are different.More »
Wednesday, Apr. 02, 2014 7:20PM EDT
Imagine professional golf players, at their discretion, dictating which of their shots would go on record for tournament scores and which would be swept under the rug. If regulations allowed such practices, a mediocre player with a large broom might triumph at the U.S. Open.More »
Tuesday, Mar. 11, 2014 6:20PM EDT
Every day, thousands of Canadians settle into chairs in front of financial advisers. Most people don’t have an interest in the stock market. They know they should be investing in RRSPs, but they don’t have the time or inclination to bother with individual stocks or ETFs. Instead, they trust an adviser to select investments for them. In most cases, they end up with a portfolio of mutual funds.More »
Wednesday, Feb. 26, 2014 7:44PM EST
Quirky imagery works well when explaining concepts to kids. Based on my experience as a high school personal finance teacher, the more ridiculous the better. So, what do index fund managers do all day? They work from hammocks like chilled hippies – if you ask my students.More »
Thursday, Feb. 06, 2014 7:51PM EST
Fidelity Investments may be the bravest mutual fund company in Canada. They compare all of their fund performances against indexed benchmarks.
Most actively managed fund companies, if they compare their results to indexes at all, are highly selective when doing so. They tout top performers in full-page magazine ads, while their dog funds cower in the company kennels.More »
Tuesday, Jan. 28, 2014 7:36PM EST
Thomas Edison was dubbed a wizard when he created the electric light bulb. The Wright Brothers became American icons when they flew the first airplane. But when John Bogle created the first index fund in 1975, it was labelled Bogle’s folly. That a passive collection of stocks could outperform most professional money managers was considered a joke. Now, nobody’s laughing. Vanguard’s Total U.S. Stock Market Index, thanks largely to its popular, lean-cost structure, is now the largest fund on the planet.More »
Thursday, Jan. 02, 2014 4:59PM EST
Purchasing high dividend paying stocks is a lot like driving an old F1 race car. You select your stocks, like choosing a gear. Feeling the clutch, the manual gearbox and revving engine behind gives a sense of control.
But F1 cars have evolved. Transmissions are now semi-automatic, removing some of the drivers’ work. As a result, the cars are faster. Dividend investors may wish to do likewise, with high dividend yielding indexes.More »
Friday, Dec. 27, 2013 8:30PM EST
One of the things I’m most proud of this year is talking lots of kids in my high school personal finance class into opening investment accounts. The youngest was 14, the oldest 18.More »
Thursday, Dec. 26, 2013 5:00AM EST
I recently received an e-mail from Magnus Boecker, CEO of the Singapore Stock Exchange. The former president of the Nasdaq OMX Group had seen me speaking on CNBC Asia, and wondered whether I was interested in getting together for coffee.More »
Thursday, Nov. 14, 2013 7:47PM EST
Walter Mischel of Stanford University used a bunch of four-year-olds to change how we think about willpower. He placed the kids in a room without any distractions. He then stuck a marshmallow in front of each child.More »
Wednesday, Oct. 09, 2013 7:39PM EDT
When newspapers sponsor public challenges for active investors to strut their stuff, the results are often embarrassing. In 2012, the British paper The Observer pit selected professional stock pickers against a group of children and a cat named Orlando. The feline purred to the top, gaining 10.8 per cent, compared to 3.5 per cent for the professionals and a 2.9 per cent loss for the kids. (Orlando made his picks by throwing a toy mouse at a grid of numbers allocated to different companies.) How did Vanguard’s British stock market index measure up? It gained 17.4 per cent.More »
Thursday, Sep. 12, 2013 7:49PM EDT
A portfolio of classic action heroes has helped The Expendables film series kick some box office butt. The Sylvester Stallone-led mercenaries, including Jet Li and Arnold Schwarzenegger, are now filming their third instalment.More »
Friday, Aug. 23, 2013 7:39PM EDT
Today I’m a full-fledged index investor, but there was a time when I owned some individual stocks. What was my favourite company back then? Berkshire Hathaway Inc.
I was a devoted fan. For more than a dozen years, whenever its share price dropped, I scurried to buy more. By 2011, my Berkshire holdings had grown to $370,000 (U.S.). Like most stock investors, I had my reasons for owning it, but one in particular might surprise you. To me, it was an index fund on speed.More »
Tuesday, Aug. 13, 2013 1:49PM EDT
Vanguard Canada is still a scrappy newcomer to the Canadian scene, where it has to face off against much bigger competitors in the battle for investors’ affection, but it’s growing quickly by offering exchange-traded funds (ETFs) designed to appeal to cost-conscious savers.
With the announcement of five new ETFs this week, the firm now features 16 low-cost index funds with an industry-low average management fee of just 0.21 per cent.More »
Friday, Aug. 09, 2013 7:30PM EDT
There are permanent portfolios and then there’s the Permanent Portfolio.
Devised decades ago by the late investing writer Harry Browne, it combines gold, stocks, long-term bonds and cash in equal proportions. The mix never varies and the investor’s only responsibility is to buy or sell once a year, as needed, to maintain the target allocation.More »
Friday, Jul. 19, 2013 1:53PM EDT
This might sound crazy, but I don’t want to see my indexes rise in value. My Vanguard U.S. stock market index has gained an irritating 22 per cent in Canadian dollars; Vanguard’s FTSE Developed Market ETF has also misbehaved, gaining 15 per cent.More »
Sunday, Jun. 16, 2013 5:37PM EDT
Many investors feel as if they’re walking in high heels on black ice. Based on the last dozen years, it’s easy to see why. Sure-footed gains have been followed by spectacular crashes.
U.S. stocks enjoyed history’s longest bull market through the 1990s then fell 34 per cent between July, 2001, and March, 2003. Canada’s stock market doubled after 2003 only to see most of those gains wiped out between June, 2008 and March, 2009.More »
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Stock market ideas, investing insights (and competition): Watch and participate as four of Canada’s brightest investors go head to head in a battle for portfolio supremacy. Whether you’re a dividend collector, a value hunter, a growth junkie or an indexing enthusiast, you’ll find inspiration for your own investing.
About Andrew Hallam
Andrew Hallam is the author of the best-selling book Millionaire teacher: The nine rules of wealth you should have learned in school. Raised in British Columbia, he now teaches personal finance at Singapore American School -- and built a million-dollar investment portfolio on a teacher’s salary.