What Bogle Thinks of ETFs; Gross vs. ‘Cult’; Paycheck Stress: October Research—Slideshow

Research's October issue delves into John Bogle's ETF criticism, Bill Gross' stock skepticism and what's squeezing advisor compensation.

The October issue of Research deals with formidable personalities and controversial issues. In the cover story "How John Bogle Really Sees ETFs," the Vanguard founder and index-fund pioneer talks about the exchange-traded fund field and its evolution. Readers may be surprised by his forceful yet nuanced views.

In feature article "Bill Gross vs. the Equity Cult," Prof. Michael Finke analyzes the bond maven's argument that equity returns going forward are unlikely to measure up to the gains of the late 20th century. Another article, "The Compensation Squeeze," looks at pressures on advisor paychecks and the narrowing gap between compensation of wirehouse brokers and independent advisors.

Also in the October Research: "Beyond the Ivory Tower," a profile of data-driven MIT economist James Poterba, winner of the 2012 Achievement in Applied Retirement Research Award; "The Second Call," a continuation of Bill Good's Sales Seminar column series on cold calling; and more.

Click through the following slides to preview Research's October issue.

How John Bogle Really Sees ETFs

John C. Bogle, Vanguard founder and pioneer of index funds, talks with Research about exchange-traded funds, and what he has to say is blunt. For instance: "Actively managed ETFs are basically casino-type things, leveraging three to one. I call that a lunatic strategy."

At the same time, Bogle's views have evolved over time and may surprise readers. Contributor Editor Jane Wollman Rusoff draws on interviews with Bogle and financial advisors to examine the controversial ETF state of the art.

Read the full article.

 

 

Bill Gross vs. the Equity Cult

Michael Finke, Texas Tech professor and contributing editor of Research, assesses the recent contretemps where bond maven Bill Gross described past equity returns as a “historical freak, a mutation likely never to be seen again" and described stock proponents as a "cult."

Finke looks at historical data and weighs in on the question of whether Gross has a compelling case.

Read the full article.

 

 

The Compensation Squeeze

Contributing Editor Ellen Uzelac reports on advisor compensation trends and finds little reason to break out the champagne.

New York City-based consultancy Johnson Associates is forecasting a 5-10% bump in compensation for advisors across channels, a downgrade from estimates early in the year. Meanwhile, firms are cutting costs in what consultant Danny Sarch calls "a more subtle way, or insidious way, of taking money out of pocket.”

Read the full article.

 

Beyond the Ivory Tower

Economist Jim Poterba’s curriculum vitae spans 19 pages and includes Congressional testimony, fellowships, lectures, books and more. Now, the 54-year-old MIT professor can add another line to his credits: the 2012 Achievement in Applied Retirement Research Award, sponsored by Research magazine and AdvisorOne.com, as well as RIIA.

The award will be presented in October at the Retirement Income Industry Association’s fall conference. “Jim’s the academic economist equivalent of a gold medal Olympic athlete,” says Moshe Milevsky, the winner in 2008.

Read the full article.

The Second Call

Sales Seminar columnist Bill Good offers the second in a series of columns on cold calling. This column's focus: the second call to a prospect.

Good writes: "We have one primary objective of the second call: determine if this person is in fact qualified and interested enough to set an appointment."

His techniques could put cold calling in a new perspective.

Read the full article.

 

See the contents of the October issue of Research.

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