The Power of Passive Investing

A practical guide to passive investing Time and again, individual investors discover, all too late, that actively picking stocks is a loser's game. The alternative lies with index funds. This passive form of investing allows you to participate in the markets relatively cheaply while prospering all the more because the money saved on investment expenses stays in your pocket. In his latest book, investment expert Richard Ferri shows you how easy and accessible index investing is. Along the way, he highlights how successful you can be by using this passive approach to allocate funds to stocks, bonds, and other prudent asset classes. Addresses the advantages of index funds over portfolios that are actively managed Offers insights on index-based funds that provide exposure to designated broad markets and don't make bets on individual securities Ferri is also author of the Wiley title: The ETF Book and co-author of The Bogleheads' Guide to Retirement Planning If you're looking for a productive investment approach that won't take all of your time to implement, then The Power of Passive Investing is the book you need to read.

A practical guide to passive investingTime and again, individual investors discover, all too latethat actively picking stocks is a loser's game. The alternativelies with index funds. This passive form of investing allows you toparticipate in the markets relatively cheaply while prospering allthe more because the money saved on investment expenses stays inyour pocket.In his latest book, investment expert Richard Ferri shows youhow easy and accessible index investing is. Along the way, hehighlights how successful you can be by using this passive approachto allocate funds to stocks, bonds, and other prudent assetclasses.* Addresses the advantages of index funds over portfolios thatare actively managed* Offers insights on index-based funds that provide exposure todesignated broad markets and don't make bets on individualsecurities* Ferri is also author of the Wiley title: The ETF Bookand co-author of The Bogleheads' Guide to RetirementPlanningIf you're looking for a productive investment approach thatwon't take all of your time to implement, then The Power ofPassive Investing is the book you need to read.

Foreword viiPreface ixAcknowledgments xixPart I The Active Versus Passive Debate 1Chapter 1 Framing the Debate 3Chapter 2 Early Performance Studies 15Chapter 3 The Birth of Index Funds 33Chapter 4 Advances in Fund Analysis 41Chapter 5 Passive Choices Expand 61Chapter 6 Portfolios of Mutual Funds 79Part II Chasing Alpha and Changing Behavior 93Chapter 7 The Futility of Seeking Alpha 95Chapter 8 Active and Passive Asset Allocation 117Chapter 9 Changing Investor Behavior 133Part III The Case For Passive Investing 155Chapter 10 The Passive Management Process 157Chapter 11 The Passive Case for Individual Investors 175Chapter 12 The Passive Case for Charities and Personal Trusts 193Chapter 13 The Passive Case for Pension Funds 211Chapter 14 The Passive Case for Advisors 221Glossary 233Notes 245About the Author 253Index 255