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.
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.
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.