First, we needed a set of active mutual fund returns that dated back to the 1970s. The Center for Research in Security Prices, or CRSP, is a highly regarded database of individual security and mutual fund data, maintained by University of Chicago.
This article examines the industry classification schemes used in business research from the Standard Industrial Classification system and the North American Industry Classification System to market-based industry classification schemes like the Global Industry Classification and the Industry Cla
GUS SAUTER, Wealth Management, The Wall Street Journal
Few people realize that since the bursting of the tech bubble from 2001-2003, the stock market has had positive total returns, as measured by the total market indexes of MSCI and CRSP, in every calendar year except 2008. That record was intact again in 2015 as the CRSP total market index provided an admittedly minuscule, but still positive, return of 0.40%.
J.B. Heaton, Nick Polson and J.H. Witte recently authored a nice short paper—it’s all of four pages—entitled “Why Indexing Works.” In it, the authors developed a simple stock selection model to explain why active equity fund managers tend to underperform their benchmark index.