An Investor's Guide to the Index Fund Controversy

11 Pages Posted: 24 Dec 2013

Date Written: November 1, 1976


Ideally, an index fund should provide the best possible tradeoff between expected return and risk for the investor who has no research advantage. A number of practical problems arise, however, when one attempts to translate this ideal into practice. Even in the absence of a research advantage, a managed portfolio can compete effectively with index funds in coping with these problems. But if such an advantage is available, the managed portfolio can capitalize on it.

Keywords: index fund

JEL Classification: G10

Suggested Citation

Good, Walter Rexford and Ferguson, Robert and Treynor, Jack L., An Investor's Guide to the Index Fund Controversy (November 1, 1976). Financial Analysts Journal, November/December 1976. Available at SSRN:

Walter Rexford Good

Independent ( email )

No Address Available

Robert Ferguson (Contact Author)

AnswersToGo ( email )

6815 Edgewater Drve
Apt 208
Coral Gables, FL FL 33133
United States
7868974573 (Phone)

Jack L. Treynor

Independent ( email )

No Address Available

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