Consuelo Mack WealthTrack “Index Revolution,“ premiering nationwide beginning this Friday, August 12 at 7:30 p.m. ET on public television (check local listings**) and on wealthtrack.com, features an exclusive interview with “Financial Thought Leader,” consultant and author Charles Ellis (Winning the Losers Game, The Elements of Investing) about his upcoming book The Index Revolution: Why Investors Should Join It Now (out September 26 via Wiley) on why investing in low-cost, passive index funds, not actively managed ones, is the best choice for most individual investors.
In what is being dubbed ‘flowmageddon,’ investors are now pulling hundreds of billions of dollars out of actively managed mutual funds and shifting the money to passive index funds, which now account for 40% of the $9 trillion invested in U.S. stock mutual funds and exchange-traded funds (ETFs). WealthTrack Anchor and Executive Producer Consuelo Mack thinks the evidence for the move is pretty compelling: 83% of actively managed U.S. stock mutual funds underperformed the market over the last decade.
Charles Ellis Exclusive On His New Book “The Index Revolution“
In this interview excerpt, Charles Ellis explains why most money managers are trailing the markets and will continue to do so:
When Baupost, the $30 billion Boston-based hedge fund now managed by Seth Klarman, was founded in 1982, it was launched with a core set of aims. Q4 2021 hedge fund letters, conferences and more Established by Harvard professor William Poorvu and a group of four other founding families, including Klarman, the group aimed to compound Read More
“The easiest thing in the world, if you would like to be above average, all you have to do is…to index rather than this crazy thing called active investing, which used to work in a different environment. It doesn’t work in this environment. So if you’d like to be above average, that’s easy, index, and you will be clearly, decisively almost every year and certainly every decade, comfortably above average and lower taxes and less anxiety and worry…”