| Real Indices Don't Wear Alphas By a quick count, there are over 300,000 indices provided by global institutions to follow equity, bond, currency, commodity, styles, sectors, regions, countries, alternative investments and other categories. And in spite of this large number, there are new indices being created, such as fundamental and 130-30 benchmarks. Do managers need so many and such specialized indices? With the Beta index world clearly well served, there is a tendency now to go after the Alpha world to deliver new indices. As we discuss below, this is clearly not a good trend for investors or managers alike. |
