Category: Mutual Funds

Question of the Day: What percentage of U.S. mutual fund assets are in index (or passive) funds?

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Nov 27, 2017
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Investing, Question of the Day, Stocks, Mutual Funds
Answer: 42% From LA Times: More from the LA Times: These “passively managed” or “index” funds have delivered as they said they would — and have shamed many “actively managed” U.S. stock funds, the majority of which over the long run have failed to exceed or match the average market return after deducting their fees. Passive funds were relatively slow to catch on with individual investors in the 1980s and ’90s. But over the last few years,...

Article: The Dead Man Fund

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Nov 17, 2017
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Investing, Article, Mutual Funds, Savings, Stocks
This 7 minute article that appeared in Longreads hooked me in the first paragraph:  In 1989, Morningstar, Inc., an advisory service, issued a strongly worded and unusual recommendation to its clients who had placed money with a firm then called the Steadman Funds (later known as the Ameritor Funds). “We urge you to cut your losses and get out,” Morningstar counseled. Doubtless, some investors heeded this advice. Many couldn’t, though, because they were dead. I wanted to...

For Your Listening Pleasure, The Top 10 NGPF Podcasts

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Jul 25, 2017
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Podcasts, Credit Scores, Credit Cards, Index Funds, Investing, Mutual Funds, Current Events, Credit Reports, Featured Teachers, Entrepreneurship
The NGPF Podcast started almost two years ago (and almost 100 podcast segments later) allowed me to “scratch my own itch.” To anyone who knows me, I love talking finance and since I was young I was always told that I had a voice (and a face) for radio. I thought why not try this “podcasting thing” and see what happens. My thinking was “How much fun would it be to reach out to interesting people, including educators, researchers, columnists, finance experts, authors,...

Decision Tree: Active vs. Passive

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Jun 12, 2017
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Chart of the Week, Behavioral Finance, Question of the Day, Research, Index Funds, Mutual Funds, Current Events
Sometimes a simple model or flow chart elucidates a complex question. Here is one example of that principle (from Mr. Zepczynski’s blog):   Questions: What are the three questions that you have to answer in the affirmative (with a YES) in order to be an “active investor?” Which of the three questions do you think is most difficult to answer? easiest to answer? What is meant by market efficiency? Can you think of examples when the markets may NOT have been efficient? How...

Laura's Insights: NGPF in the Classroom!

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Mar 29, 2017
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Personal Finance, Credit Scores, Paying for College, Credit Cards, Index Funds, Investing, Mutual Funds, Financial Literacy, Teaching Strategies, Compound Interest
This year, NGPF took our show on the road and taught personal finance workshops in several local schools.  These experiences included a 3 day workshop at the Nueva School (San Mateo), a four session workshop at Castilleja school (Palo Alto), seven sessions with an AVID classroom at Mountain View High School (Mountain View) and our intensive 6 week workshop at Eastside Prep (East Palo Alto). In this post, I will share my experiences at the Castilleja School, an all-girls school just down the...

Resource Lists for Financial Educators (courtesy of Barbara O'Neill of Rutgers Cooperative Extension)

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Mar 28, 2017
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Activities, Credit Scores, Career, Paying for College, Research, Budgeting, Credit Cards, Identity Theft, Personal Finance, Investing, Mutual Funds, Savings, WebQuest, Financial Literacy, Student Loans, Checking Accounts, Debit Cards, Payment Types, Stocks, Current Events, Insurance, Video Resource, Case Study, Credit Reports, Employment, Quizzes, Entrepreneurship
What does a distinguished professor do during her sabbatical? Curate personal finance resources, of course! In this blog post, Barbara O’Neill shares the fruits of her hundreds of hours of labor in putting together three awesome resource lists (see bottom of post for links to her lists), including what what she considered the “best of the best” from the NGPF library. As she describes below, the purpose of her odyssey was to replenish her “well” of creative...

Web Quest: How Do I Buy A Stock (Or Better Yet, An Index Fund)?

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Mar 15, 2017
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Investing, Activity, Research, Index Funds, Mutual Funds, WebQuest, Stocks, Activities
A teacher at our recent FinCamp reminded me that we should not forget about the importance of the mechanics of personal finance transactions. What good is teaching students about the importance of investing if they don’t know how to go about setting up an account to buy/sell investments. While we have a activities on how to select a credit card and a bank account, we don’t answer the basic question that many young investors have which is “How do I buy a stock?” Rather...

Videos: What's New In Investing?

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Mar 12, 2017
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Investing, Behavioral Finance, Index Funds, Mutual Funds, Stocks, Current Events, Video Resource
Warren Buffett’s Million Dollar Bet: Who’s Winning (from MarketWatch)? What’s the bet? What’s a hedge fund? What’s an index fund? Who’s winning? Why? Why should this matter to you as a regular investor? What’s the lesson? Fee war breaks out on commissions to trade stocks (from CNBC): How much are brokerage fees going down? Is this good news for investors? Why do you think the online brokerage stocks are falling with this news? Do you think...

Interactive: What's the S&P500?

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Mar 06, 2017
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Current Events, Index Funds, Investing, Mutual Funds, Stocks, Math, Interactive
Here’s a great interactive for students who struggle with the concept of the S&P500 or of an index or mutual fund. For a math teacher, this interactive would be percentage heaven! I blogged about this in October 2014 when most of you were NOT reading this blog so definitely worthy of a repeat post. I have added better questions for your students to answer too. From finviz.com comes this great visualization of the S&P500: Here’s a description of what you are looking at: Each...

Having Fun With Investing Cartoons

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Feb 15, 2017
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Cartoons, Investing, Mutual Funds, Teaching Strategies
Here are three cartoons focused on investing and a few questions for your students to ponder: What is happening in the cartoon? What is the motive of the cartoonist? What lessons can you glean from these cartoons to help your financial life? In this case, the experts are right! Check out this NGPF Activity on Compound Interest. Create an activity to see what happens when parents invest in college saving or 529 plans when their children are born.  —————-  ...

Ways To Make Investing Simpler

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Feb 14, 2017
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Webinar, Index Funds, Investing, Mutual Funds, Teaching Strategies, Podcasts, Compound Interest
I have been thinking a lot about this issue of how to make investing simpler. I hear from teachers that this is a real pain point for them. I can see in the NGPF podcast stats that the most popular guests tend to be conversations about investing (Mike Finley, Jonathan Clements and Vanguard’s Jim Rowley to name a few). Then this weekend the lightbulb went off. I was heading to the coast listening to Charlie Ellis on the Masters In Business podcast (kinda dorky I know). Those of you not...

Activity Idea (with Spreadsheets): Let's Make An Index Fund

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Jan 29, 2017
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Index Funds, Activity, Behavioral Finance, Investing, Mutual Funds, Teaching Strategies, Math, Activities
I awoke this morning thinking “how can you make index funds more tangible for students?” Why do I care about this? Anyone who has heard my rantings before either in this blog or on the NGPF podcast knows that I abhor the Stock Market Game. It teaches all the wrong lessons about investing: the short term nature of it, the “luck” factor, the highest risk strategy wins and so on. At some point, I will create a game to counter these lessons that is focused on index funds. The...

Question: Do Active Investment Managers Buy Their Own Funds?

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Jan 11, 2017
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Mutual Funds, Research, Index Funds, Investing, Stocks
Incentives matter when it comes to financial products. Hat tip to Meb Faber whose podcast I was listening to earlier today and reminded me about this 2008 research report titled “Do Managers Eat Their Own Cooking?” from Russ Kinnel at Morningstar. As the title suggests, Kinnel analyzed whether mutual fund managers actually invest their money in their own funds. Recall that the promise of active management, and the reason that investors pay fees of around 1%, is that they can beat...

Infographic: How is Buying a Car Different From Selecting An Investment?

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Nov 13, 2016
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Behavioral Finance, Investing, Mutual Funds, Stocks, Purchase Decisions
From Vanguard and seen on Visual Capitalist (hat tip to Big Picture Blog): Quick explanation: Looking at past performance of cars is generally a good predictor of how the cars will perform in the future. As evidence, the chart shows that 8 of the top 10 cars from 2005 were still top performing in 2014. With investments on the other hand, the second chart which shows annual returns for various asset classes shows no discernible pattern. Yet, too many investors think that past performance is an...

NGPF Podcast: Tim Talks to Personal Finance Author and Journalist Dan Kadlec

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Nov 04, 2016
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Audio Resource, Behavioral Finance, Personal Finance, Investing, Mutual Funds, Stocks, Current Events, Podcasts
I really enjoyed the conversation that I had recently with Dan Kadlec on the NGPF podcast. With over thirty years as personal finance columnist (you’ve probably seen him in TIME and Money), we had a lot to talk about. When his dreams of being a sportscaster didn’t come to fruition, he focused his efforts on the business beat during the go-go 1980s. Dan describes what motivated him to shift his focus to educating young people about money through his work as a journalist, author...

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