Vanguard International High Dividend Yield
Index Fund follows an income investing strategy, focusing on companies with high dividend yields.
Many investors sing the praises of
index funds. When you consider the recent dominance of indexes such as the S&P 500, what's not to like?
Bogle founded the Vanguard Group and in 1974 and in 1976 launched the First Index Investment Trust, the first
index fund available to the public and the forerunner of today's Vanguard 500
Index Fund.
Compared to other types of equity funds, equity
index funds also charge lower management fees since the fund manager doesn't need to do much to replicate the performance of the index.
Index funds, which are considered passive investments, actually outperform most actively managed mutual funds -- where well-paid professionals use their judgment to choose which stocks and other securities to buy and sell. For example, over the 15 years ending in June 2018, about 92% of U.S.
Initially derided as "Bogle's folly,"
index funds have become the default way to invest for so many people that some critics now worry about unintended, market-distorting effects that could ultimately hurt investors and society.
Miranda said BPI AMTC hopes to make every investor optimistic about the stock market through passively-managed peso equity funds in the country such as the BPI Philippine Consumer Equity
Index Fund.
He returned to the subject in a 2016 letter, writing, "Both large and small investors should stick with low-cost
index funds." And in his newest shareholder letter, Buffett said that one reason he made a widely publicized bet (which he has now won) that a low-cost Vanguard
index fund would outperform a group of hedge funds over a 10-year period was "to publicize my conviction that my pick -- a virtually cost-free investment in an unmanaged S&P 500
index fund -- would, over time, deliver better results than those achieved by most investment professionals, however well regarded and incentivized those 'helpers' may be."
The BPI Philippine Infrastructure Equity
Index Fund invests in common stocks of corporations that derive at least 50 percent of their revenue from infrastructure products or services, or have at least 50 percent of the fair value of their net assets being utilized for infrastructure-related business activities.
index fund provider, with a total of 36 funds with $155.9 billion in assets.
Index funds are merely a vehicle for asset owners' views; the funds themselves do not drive equity market prices or individual stock prices.
Overall,
index fund use increased by 19.6% between 2011 and 2016, reflecting perhaps the growing interest in passive investing and low-cost options.