The Case for Index Funds | Rational Reminder 347

Описание: Meet with PWL Capital: https://pages.pwlcapital.com/en-ca/co...

Are index funds the best investment strategy for most investors? In this episode of Rational Reminder, Benjamin Felix, Dan Bortolotti, and Mark McGrath explore why low-cost index funds should be the primary investment strategy for most people. They explain how index funds evolved from a niche concept to a widely accepted strategy and outline their six key benefits. Learn about the fees associated with index funds, why index funds outperform most actively managed funds, and how to avoid the risks of picking individual stocks. They also explore academic research on long-term mutual fund performance, the persistence (or lack thereof) in active management, and the dangers of alternative indexing schemes. Discover how behaviour impacts investment decisions and why a globally diversified portfolio is crucial. Finally, in the aftershow, Ben shares an update regarding his health and listener feedback from the Rational Reminder community. Join the conversation and uncover why index funds are the best investment strategy and how to leverage them effectively to maximize your portfolio for long-term gains. Tune in now!

Timestamps:

0:00:00 Intro
0:02:19 Main Topic: The Case for Index Funds
1:18:45 Aftershow

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/t....
Rational Reminder Website — https://rationalreminder.ca/
Rational Reminder on Instagram —   / rationalreminder  
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube —    / channel  
Rational Reminder Email — [email protected]
Benjamin Felix — https://pwlcapital.com/our-team/
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn —   / benjaminwfelix  
Mark McGrath on LinkedIn —   / markmcgrathcfp  
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dan Bortolotti — https://pwlcapital.com/our-team/
Dan Bortolotti on LinkedIn —   / dan-bortolotti-8a482310  
Canadian Couch Potato Blog — https://canadiancouchpotato.com/
Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/
Episode 54: Dr. David Blitzer — https://rationalreminder.ca/podcast/54
Episode 124: Prof. Lubos Pastor — https://rationalreminder.ca/podcast/124
Episode 133: Adriana Robertson — https://rationalreminder.ca/podcast/133
Episode 220: Jonathan Berk and Jules van Binsbergen — https://rationalreminder.ca/podcast/220
Episode 244: Charles D. Ellis — https://rationalreminder.ca/podcast/244
Episode 268: Itzhak Ben-David — https://rationalreminder.ca/podcast/268
Episode 302: Michael Green — https://rationalreminder.ca/podcast/302
Episode 346: Hendrik Bessembinder — https://rationalreminder.ca/podcast/346
Coffeezilla —    / @coffeezilla  
Coffeezilla: Investing for Idiots —    • investing for idiots  
YCharts — https://ycharts.com/

Papers From Today’s Episode:

'The Arithmetic of Active Management' — https://www.tandfonline.com/doi/pdf/1...
'Sharpening Sharpe’s Arithmetic' — https://www.tandfonline.com/doi/full/...
'Mutual Fund Flows and Performance in Rational Markets' — https://www.journals.uchicago.edu/doi...
'Why Indexing Works' — https://onlinelibrary.wiley.com/doi/a...
'Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks' — https://www.tandfonline.com/doi/abs/1...
'The Performance of Mutual Funds in the Period 1945-1964' — https://www.jstor.org/stable/2325404
'On Persistence in Mutual Fund Performance' — https://doi.org/10.1111/j.1540-6261.1...
'Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk' — https://onlinelibrary.wiley.com/doi/f...
'Passive in name only: Delegated management and index investing' — https://heinonline.org/HOL/LandingPag...