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S&P500 Ain’t Passive
April 16, 2023 More than 20 Trillion (T) Dollars are managed passively today. The industry is 25% of the total $100 T investment management industry and has seen an annual growth of 20% since 2007 while the Active industry has grown at 4.4% for the same period at these growth rates. At the current growth…
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Why is Shopify in top 10?
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How BSE 100 missed the Adani’s?
Did you know that India’s most prominent 100 companies mapped as S&P BSE 100 experienced its emerging moment when in a matter of nearly 36 months, four Adani group companies scaled up 1000 to 2000 times? They continued to fly under the radar as they did not have enough size [market capitalization] to get a…
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Where are the FANGs?
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The Active SPY!
This is not intuitive thinking but your passive SPY (S&P500 ETF) sitting in your pension fund is only passive and low risk in perception. What you call a zero fee (or near zero fees) portfolio is not only concentrated but it is as concentrated as the most active portfolios in the world. We compared Berkshire…
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Fees Waterfall Effect
Now that Nasdaq 100 is nearing a 50% drawdown, Asset Owner and Investors should question the impact of fees on their portfolios if Nasdaq 100 decides to go sideways like in 2000-2010. All the annual range of fees from 0.1% to 10.92% damage and can decimate long term wealth! Interest rate risk, currency risk, inflation…
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BITW underperforms BTC by 121%!
If you know Crypto, you probably know BITW, which is the fastest-growing ETF today in the crypto space. With nearly 400 million USD invested in the product, you the investor or asset owner [Who’s already invested or plans to invest] may think that there should be something awesome here, like product innovation, alternative asset awareness…
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Why A New Smart Beta?
What is Smart Beta? And why do we need it? Smart Beta is a method to rebuild a portfolio with a weighting scheme different from the market capitalized weightage method. The weighting scheme can be based on fundamental factors different from size e.g. revenue, economic value etc. Most popular benchmarks today are built using the…
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Warren, SPY, Machines and Concentration Risk
Concentration is the most undermined risk working against long-term wealth generation. The reason you have not heard about it is that both active and passive investment management indulge in concentrated portfolios and don’t think there is anything wrong with the approach. In addition, human active asset managers’ skill of stock selection is rare, and hard…
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The S&P 500 Myth
Abstract The nearly USD 50 trillion passive investment management industry has grown over the last 50 years primarily based on the claim that 9 out of 10 Asset managers can’t beat the market, net of fees over a 5-year rolling period. This claim assumes that the S&P 500 has a superior methodology that is unassailable.…