In The News

Why Equal Weighted Mutual Funds Scoring Over Index Funds

Unlike index funds that are biased toward large caps and specific sectors, these types of funds minimize their risks by evenly distributing their weight across all caps, including medium and small-sized companies. Such funds also stay invested across all sectors in a more-or-less equal proportion.

Can You Beat the S&P 500 with an Index Fund?

Equal weight investing is an overlooked strategy for targeting stocks, but it is clearly one that can lead to outperformance over long time periods. If you are curious about this approach, check out this podcast for everything you need to know about how it works, and if this can help improve returns for long-term investors.

Alpha is a measure of an investment's performance on a risk-adjusted basis. It takes the volatility (price risk) of a security or fund portfolio and compares its risk-adjusted performance to a benchmark index. The excess return of the investment relative to the return of the benchmark index is its "alpha." Basis points is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form.

Net Expense Ratio can be found in the current INDEX FUNDS FACT SHEET.

Can You Beat the S&P 500 at Its Own Game?

In this edition of the Dutram Report, Eric Dutram with Zacks Investment Research looks for an alternate approach in a talk with Michael Willis, the Lead Portfolio Manager of INDEX FUNDS. Make sure to listen to this podcast for a closer look at equal weight investing, and what the pros and cons of this approach are for those seeking a different way to play the S&P 500.

Alpha is a measure of an investment's performance on a risk-adjusted basis. It takes the volatility (price risk) of a security or fund portfolio and compares its risk-adjusted performance to a benchmark index. The excess return of the investment relative to the return of the benchmark index is its "alpha." Basis points is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form.

Net Expense Ratio can be found in the current INDEX FUNDS FACT SHEET.

How To Beat The S&P 500 At Its Own Game: A Simpler and Better Way to Index

The equal-weight version of the S&P 500 Index is the pure version of the index because it invests in each of the 500 companies equally, without bias,” lead portfolio manager Michael G. Willis wrote in a commentary. “By definition, this makes it a better-diversified version of the index as it does not overweight a select few.”

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How a more balanced S&P 500 can lead to richer returns

"The Sage of Omaha, Warren Buffett, famously recommended that his children put their inheritance into an S&P 500 index fund rather than invest in his Berkshire Hathaway enterprise. His thinking: It’s hard to beat the market."

As of 9/30/16, the holding in Apple was 0.20%

seekingalpha

A Conversation With S&P 500 Equal Weight Fund Manager, Michael Willis

Dave Dierking at Seeking Alpha interviews Michael Willis to explain why the S&P 500 Equal Weight strategy corrects the trading flaw inherent in the Market Cap weighted indices.

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The Other S&P 500 Index You’ve Never Heard Of
Matt Frankel at The Motley Fool helps readers understand the key differences, performance, and risks associated with the S&P 500 Equal Weight index strategy.

morning

I would expect this fund to outgain conventional market-index funds
John Rekenthaler at Morningstar touches on Smart Beta and says, “I would expect this fund to outgain conventional market-index funds.”

investment

Smart-beta upstart goes after the big boys wielding lower fees as a weapon
Jeff Benjamin at Investment News highlights the proven performance and appeal for smart beta in this article.

finance

Index Funds Debuts With Equal-Weighted Mutual Fund
The S&P 500 Equal Weight index fund is Index Funds’ first product and carries an expense ratio of only 30 basis points.

business wire

INDEX Now Available Through Vanguard
INDEX FUNDS announces the availability of INDEX (NASDAQ: INDEX) through Vanguard’s affiliated broker-dealer, Vanguard Marketing Corporation to investors.

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Index Funds S&P 500 Equal Weight no-load mutual fund now available to investors
The S&P 500 Equal Weight Index is the equal weight version of the S&P 500 Index. It contains the same constituents as the cap-weighted S&P 500, but each company in the S&P 500 Equal Weight Index is allocated the same weight at each quarterly rebalance.