Đang chuẩn bị liên kết để tải về tài liệu:
Passive Investment Strategies And Efficient Markets

MERs can range from less than 1% for money market funds to more than 3% for some specialty funds. More complex funds tend to have higher MERs because the manager needs to do more to effectively manage the fund, and these funds are more costly to run. Index funds usually have very low MERs because duplicating an index involves less research and less trading. For this reason, they often outperform actively managed funds over the long term. However, keep in mind that a low MER doesn’t necessarily mean more money in your pocket. For example, you’ll make more on a fund. | European Financial Management Vol. 9 No. 1 2003 1-10 Passive Investment Strategies and Efficient Markets Burton G. Malkiel Princeton University e-mail bmalkiel@princeton.edu Abstract This paper presents the case for and the evidence in favour of passive investment strategies and examines the major criticisms of the technique. I conclude that the evidence strongly supports passive investment management in all markets smallcapitalisation stocks as well as large-capitalisation equities US markets as well as international markets and bonds as well as stocks. Recent attacks on the efficient market hypothesis do not weaken the case for indexing. Keywords passive investment strategies efficient markets. JEL classification G11 G14. 1. Introduction This paper presents a defence of passive financial investment or indexing strategies in all types of investment markets both nationally and internationally. I justify the case of such strategies by relying first on the theory of efficient markets. Recent attacks on the efficient market theory do not in my judgment weaken the case for indexing. I indicate however that passive investment strategies can be justified even if markets are less than fully efficient. The body of the paper presents the evidence in favour of indexing and examines the major criticisms of the technique. I conclude that the evidence strongly supports passive investment management in all markets small-capitalisation stocks as well as large-capitalisation equities US markets as well as international markets and bonds as well as stocks. 2. Why Does Indexing Passive Management Work a Markets are efficient Indexing is a sensible strategy because our security markets appear to be remarkably efficient in digesting and adjusting to new information. When information arises about individual stocks or about the market as a whole that information is generally reflected in market prices without delay. While it is true that a number of anomalies have been isolated by .