Index

Accounting
aggressive financial objectives and
speculation and
standards
ACE
Active management
passive indexing and
Adelphia
Administrative costs
Advertising
Advisory contracts
Advisory fees
Agency society
Agency theory
Agents versus principals
AIG
All-market index standard
Alpha
Alpha model
Alpha mutual fund
Ambachtsheer, Keith
American Enterprise Institute (AEI)
American families, and investment
American Funds
American International Group
Annual reports
Anti-benchmarking approach
Anyon, James
AOL/ Time Warner
Aon
Aquinas, Thomas
Arthur Andersen
Asset allocation
Asset-based fee rate
Asset-weighted returns
AT&T
Auditors

Babson, David
Bachelier, Louis
Balanced Index Fund
Banker capitalism
Banking scandals
BARRA Growth Index
BARRA Strategic Consulting Group
The Battle for the Soul of Capitalism (Bogle)
Bear market of 2000
Behavioral theory
Bell curves
Benchmarking
Benchmark risk
Bergstresser, Daniel
Berkshire Hathaway
Berner, Richard
Bernstein, Peter
“Best practices” for public corporations
“Beyond Portfolio Theory: The Next Frontier” (Ambachtsheer)
Black Monday
“Black Monday and Black Swans” (Bogle)
Blackrock Financial
Black Swan
“Black Swan” formulation
The Black Swan (Taleb)
Black Thursday
Board of directors
“Bogle’s Folly,”
Boldness
Bond funds
returns on
three-tier
Bond portfolios
Bottom-line society
Brandeis, Louis D.
“Breakpoint” frauds
Buffett, Warren
Building a Bridge to the Eighteenth Century (Postman)
Business
dominance of finance over
versus profession
Business cycles
Business ethics. See Ethics

Cabot, Paul
Cabot, Walter M.
Campbell, Joseph
Capital (Ellis)
Capital formation
Capital gains
Capital Group Companies case study
Capitalism
broken structure of
defined
development of managers’ capitalism
future of
Minsky stages of
mutation of system
origins of
ownership to agency society shift
review of
values and
Cardozo, Benjamin
Cato
“Challenge to Judgment” (Samuelson)
Chalmers, John
Chartered financial analysts (CFAs)
Chief executive officers
Citicorp
Citigroup
Client loyalty survey
Closet index funds
CMH. See Cost Matters Hypothesis (CMH)
Coase, Ronald H.
Cogent Research LLC client loyalty survey
Cohen, Manuel
Commercialism
Commodity Futures Trading Commission
Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor (Bogle)
Common Stocks as Long-Term Investments (Smith)
Comparative advantage versus community advantage
Competitive Equity: A Better Way to Organize Mutual Funds (AEI)
Compounding costs
Compounding returns
Compound interest
Compulsory internalization
Conference Board Blue-Ribbon Commission on Public Trust and Private Enterprise
Confirmation bias
Conflict of interest
Conglomeration
“Conglomeratization” of mutual fund industry
Corporate annual reports
Corporate ethics
Corporate governance
boards of directors
Conference Board Blue-Ribbon Commission and
decline of
gatekeepers
NYSE rules for
reform
in “rent-a-stock” industry
responsibility of
stockholders
Corporate leadership
Corporate shares, valuation of
Corporate value
determination of
mergers and
Cost Matters Hypothesis (CMH)
Cost of trade
Costs, of investing
compounding costs
escaping costs and taxes
Countrywide Financial
Cowles Commission
“Creative” accounting
Credit rating agencies

Debt overload
The Decline and Fall of the Roman Empire (Gibbon)
Defined-benefit plans
Defined-contribution plans
Defined-maturity bond funds
DeLeon, Clark
Demand-pull marketing system
Demosthenes
Derivatives
DFA
Disclosure
Dividends
Dollar-weighted returns
Dow Jones Industrial Average
Dynamic conservatism

Earnings
growth
“guidance,”
types of
Earnings restatements
Economics, and emotions
Economics: An Introductory Analysis (Samuelson)
Economics of investing
Economy, financial sector and
Education, liberal and moral
Efficient Market Hypothesis (EMH)
Ehrbar, A.F.
Einstein, Albert
Ellis, Charles D.
Embedded Alpha
Emerging Markets index fund
EMH. See Efficient Market Hypothesis (EMH)
Emotions
economics and
equity investor and
Enron
Enterprise
Enterprise Fund
Entrepreneur, defined
Entrepreneurship, innovation and
Entrepreneurship, rules of
build a better mousetrap
consistency of strategy
dare to be bold
foster economic progress/build a better world
get a mentor
get fired
get lucky
government help
keep costs down
never get discouraged
never give up
never underestimate the power of the obvious
no man is an island
take the road less traveled
turn disaster into triumph
Equity fund expenses
Ethical responsibility
Ethics
European index fund
Eveillard, Jean-Marie
Exchange privilege
Exchange-traded funds (ETFs)
assets and cash flows
as new paradigm of indexing
shareholder returns with
specialized
Spider-like
Executive compensation
“best practices” and
Expectations investing
Expectations market
Expense ratio, as fund cost
Explorer Fund
Extended Market Index Fund

A Failure of Capitalism (Posner)
Fama, Eugene
Fannie Mae
Favorite Fifty era
Federal budget deficits
Federal Employees Thrift Savings Plan
Federal Reserve
Fee dollars
Fee rates
Fibonacci sequence
Fidelity Capital Fund
Fidelity Magellan Fund
Fidelity Management and Research Corporation
Fidelity study of mutual fund firms
Fidelity Trend Fund
Fiduciary principle
building a fiduciary society
fiduciary duty concept
Fiduciary society
Finance, dominance of, over business
Financial analyst, responsibilities of
Financial and securities analysis. See also Mutual fund industry
Financial engineering
Financial instability hypothesis
Financial intermediation costs
Financial markets, volatility and unpredictability of
Financial package
Financial sector
economy and
preeminence of
Financial system crisis
Financial technology
FINRA (Financial Industry Regulatory Authority)
First Index Investment Trust
Fixed-price stock option
Focus funds
4 × 25 portfolio
Four E’s (Enemies of Equity are Expenses and Emotions)
401(k) savings plans
Fouse, William
Fractal geometry
Frankel, Tamar
Franklin, Benjamin
entrepreneurship and inventions of
investment wisdom
understanding of compound interest
virtue and
Franklin Funds
Fraud
accounting and
Madoff and
Freddie Mac
Freres, Lazard
Fund complexes
Fund management fees
Fund portfolio turnover

GAAP. See Generally Accepted Accounting Principles (GAAP)
Gardner, Howard
Gatekeepers
Gaussian (standard-frequency) distribution curves
Geithner, Timothy
General Electric
Generally Accepted Accounting Principles (GAAP)
General Motors
The General Theory of Employment, Interest, and Money (Keynes)
Gibbon, Edward
Glass-Steagall Act of 1933
Global Crossing
“Go-Go Era,”
tech-boom era compared
Gold
“Golden Mean,”
Goldman Sachs
Goodman, George J. W.
Goodman, Jerry
Gopnik, Adam
Gossen, Andrew
Governance
Government-plus funds
Graham, Benjamin
Greed
Greenberg, Ace
Greenspan, Alan
Gresham’s law
Gross fund return
Grossman, Sanford J.
Gross return, minus cost, equals net return
Growth and Current Income (GCI) funds
Growth Index Fund
Growth versus value stocks

Hamilton, Alexander
“Happy conspiracy,”
Harris, Trevor
Hart, Oliver
Hawkins, Mason
Healy, Robert F.
Hedge funds
Homer
Horace
Howell, Martin
Hudson, Richard

IBM
Illusions
Impartial spectator
Incentive fees
Incorporated Investors
Incubation funds
Index funds
advantages of
benchmarking and
birth of
classic index fund
combined assets of
as core investor strategy
defined
escaping costs and taxes
initiation reaction to
intellectual basis for
lessons of
new wave of
paradigm of original
segmented
success of
Vanguard Group as original
variations on long-term, all-market indexing
Index funds nouveau
Indexing
growth of
new paradigm of
passive index strategy
reverberations
schools of
as ultimate investing reality
Index pension account
Industrial capitalism
Information Age
Information asymmetry
Information technology
Information theory
Institutional 500 Fund
Institutional investing
casino-like trading
as rent-a-stock industry
voting control and
Institutional investment management
Insurance bid-rigging scandals
Insurance Securities, Incorporated (ISI)
Intermediation, price of
Intermediation society
International funds, and time-zone trading
Investing, economics of
Investing approach
“Investment America,”
Investment committee
Investment Company Act of 1940,
Investment Company Amendments Act of 1970
Investment Company Institute
Investment Company of America (ICA)
Investment illusions
Investment income
Investment management
field of
reliance on past performance
Investment principles
Investment return
Investment system, shareholder focus and
Investors
behavior of
discouragement of long-term
emotions of
reliance on financial intermediaries
volatility of
Invisible cost
Invisible hand
IRAs

Janus
Jefferson, Thomas
Johnson, Edward C. III
Junk bonds

Kant, Immanuel
Kaufman, Henry
Keller, Helen
Keynes, John Maynard
Khurana, Rakesh
Knight, Frank H.

Lanchester, John
Large-cap versus small-cap stocks
Legislative review of accounting practices
Lehman Aggregate Bond Index
Liberal education
LifeStrategy funds
Little Book of Common Sense Investing (Bogle)
Lo, Andrew W.
Lobbyists
Long-Term Growth, Income Secondary (LTG) funds
Long-term investing, as winning strategy
“The Loser’s Game” (Ellis)
Lowenstein, Roger
Lown, Bernard
Lucas, Robert
Lynch, Peter

Madison, James
Madoff, Bernard
Magellan Fund
Managed costs
Managed equity funds
Management compensation
Management fees. See Intermediation, price of
Managerial capitalism
Managers’ capitalism
Mandelbrot, Benoit
Manhattan Fund
Market benchmark
Market forces, and professional conduct
Marketing expenses
“Marketing-ization” of mutual fund industry
Market portfolio
defined
reversion to the mean in
Market-segment index fund
Market-timing programs
Markowitz, Harry
Marshall, Alfred
Marsh & McClennan
Martin, Roger
Massachusetts Financial Services
Massachusetts Investors Trust (MIT)
from Alpha to Omega
demutualization of
development of
long-term investment record
Maximum Capital Gain (MCG) funds
McGucken, Elliot
McQuaid, Brad
McQuown, John
Measurement fallacies
Mentoring
Merchant capitalism
Merger-and-acquisition strategy
Mergers
and corporate value
shareholder wealth and
Merrill Lynch
Merrill Lynch Embedded Alpha study
Metropolitan Life Insurance Company
Meyer, Jack
Mid-cap fund (S&P 400)
Miller, Bill
Minsky, Hyman
The (Mis)Behavior of Markets (Mandelbrot)
MIT. See Massachusetts Investors Trust (MIT)
Modern Portfolio Theory
The Money Game (Smith)
Money management
field of
reconciliation of, in favor of client
Money-manager capitalism
Monks, Robert
Monte Carlo simulations
Moral absolutism to moral relativism
Moral education
Moral relativism
Moral responsibility, of business
Morgan, Walter
Morgan Growth Fund
Morgan Stanley
Morningstar star system
Mortgage-backed debt obligation
Mortgage bankers
Mortgage defaults
Most, Nate
Munger, Charles (Charlie)
Murphy, Kevin M.
Mutual fund consultants
Mutual fund directors
Mutual fund industry
bringing “mutuality” to
costly/counterproductive trends
cost reporting
costs of
deterioration of values in
fiduciary principle and
fund returns versus investor returns
future scenario
growth of
investment focus
investment process
investment strategy
investor behavior
investor protection in
marketing versus management firms
mission of
private companies versus conglomerates
record
retirement savings and
salesmanship over stewardship
Mutual fund management. See also Fiduciary principle
commandments for independent directors
early focus of
ethical responsibility of
fiduciary duty proposal
fund performance and shareholder loyalty
myth of long-term investors
violation of fiduciary duty
Mutual fund market timing
Mutual funds
active versus passive funds
bond funds
declining costs myth
disclosure proposals
embedded alpha
evaluation of
failure rate of
fund returns versus shareholder returns
growth versus value
holding period of
as long-term investments, myth of
meeting of investor expectation, myth of
myths of
principal function of
publication of theoretical returns of
return of average equity funds
role of RTM in
specialization of
“Statement of Policy,”
Mutual fund shareholders, myth of long-term nature of
“The Mutual Fund Industry 60 Years Later: For Better or Worse?” (Bogle)

NASDAQ 100 Qubes
NASD Rules of Fair Practice
Nationalization
National wealth, and retirement savings
“The Nature of the Firm” (Coase)
Neff, John
Net investor return
New Economy
New-policy portfolios
Newton, Isaac
New York Stock Exchange
Not-for-profit investment management
Numeracy

Obama, Barack
Obstfeld, Maurice
Occam’s Razor
Odyssey (Homer)
Omega model
On Money and Markets (Kaufman)
Operating costs
Operating earnings
Opportunity cost
Optimism, bias toward
Other People’s Money and How Bankers Use It (Brandeis)
Owners’ capitalism
Ownership society
“Ownership society,”

Pacific index fund
“Paradox of thrift,”
Parsons, William
Pascal
Passive index strategy
Pay-to-play distribution agreements
Pennsylvania fireplace
Pension plans
fees and transaction costs in
management of
realistic returns of
Pfaff, William
Philadelphia Contributionship
“Play-for-pay” morality
Ponzi scheme
Popper, Karl
Portfolio managers
Portfolio turnover
Posner, Richard
Postman, Neil
Pragmatic School
Predators and Profits (Howell)
Price competition
Price-earnings ratio
Prince, Charles
Princeton University
Principals, interests of
Principles, investment
Private pension plans
Product marketing
Profession, versus business
commercialism
profession defined
Professional conduct, and market forces
Profit motive
Pro forma earnings
Public Company Accounting Oversight Board
Public pension plans
Public Policy Implications of Investment Company Growth report
Putnam Management

Quakers
Quantitative analysis
Quantitative School
Qubes
Qwest/U.S. West

“Random walk” hypothesis
Real estate bubble
Reality bites theory
“Real” (stock) market
Reasonableness, standard of
Redemption fees
Redemption rate
Regulatory agencies, and accounting
Reinforcement bias
Rent-a-stock industry
Reported earnings
Restated earnings
Retirement savings and national wealth
Returns, on mutual funds
Reversion to the mean (RTM)
in equity mutual funds
irregularity and unpredictability of
large-cap versus small-cap stocks
manifestations of
in market portfolio
real market versus real investment return
in slice-and-dice portfolios
S&P 500 and
stock market and
value stocks versus growth stocks
Risk
approach to
indexing and redefining of
measurable
Social Security and Medicare
and uncertainty distinguished
Risk, Uncertainty, and Profits (Knight)
Rochester University endowment fund
Rodriguez, Bob
Rogoff, Kenneth S.
Rohatyn, Felix
RTM. See Reversion to the mean (RTM)
Russell 2000 Index Fund

Sacks, Jonathan
Sales commissions
Sales loads, as fund expense
Salesmanship
Samsonite Corporation
Samuelson, Paul
Santayana
Sarbanes-Oxley bill
Sauter, Gus
Scandals
Schapiro, Mary
Schumpeter, Joseph
Sector fund investors
Securities and Exchange Commission
advisory contract trafficking and
capital markets and
on reasonableness
statutory standard of reasonableness
Securitization
Security analysts
Segment funds
Selection penalty
Self-interest
Shapiro, Harold
Share distribution
Shareholder return disclosure
Shareholders
disclosure of expenses paid by
fund returns versus shareholder returns
of funds
investment system and
management for interests of
measuring satisfaction of (redemption rate)
shareholder-first Golden Rule
Sharpe, William F.
Shaw, George Bernard
Shleifer, Andrei
Short-term speculation
Shulman, Lee S.
Siegel, Jeremy
Simplicity
Sinclair, Upton
Six-sigma syndrome
Slice-and-dice portfolios
Small-cap growth fund (S&P 600)
Small-cap index fund
Small Capitalization Stock Index Fund
Small-cap value fund
Small-cap versus large-cap stocks
Smith, Adam
invisible hand and impartial spectator
on negligence
Smith, Edgar Lawrence
Smith, Richard B.
Sophocles
Spacek, Leonard
Specialization, of mutual funds
Speculation See also “Go-Go Era”
over investment
Speculative return
Spiders (SPDRs)
Spitzer, Eliot
Sprint
“Stale Prices and Strategies for Trading Mutual Funds,”
Standard Oil of New Jersey
Standard & Poor’s
Barra Growth Index
500 Index Fund
500 Common Stock Price Index
500 Composite Stock Price Index
Stansky, Robert
Statement of policy
State Street Investment Corporation
Statutory standard of reasonableness
Stewardship
boards of directors and
focus on
Stiglitz, Joseph E.
Stimulus package
Stockholders
Stock market
bias toward optimism
bubble
certitude and history of
emotions and
predictions and Black Swans
real market and expectations market
real returns 1901-2009
returns, and fractal patterns
total return and investment return
Stock options
Stocks
conventional valuation of
dividend income
expected annual return
large-cap versus small-cap
price of, and corporate value
rental versus ownership of
value versus growth
Stocks for the Long Run (Siegel)
Stone, Harlan Fiske
Strategy follows structure
Strine, Leo E. Jr.
Style benchmark
Style index funds
Subprime mortgages
“Success in Investment Management: Building and Managing the Complete Firm,”
Sun Life of Canada
Supermoney era
Supermoney (Smith)
Supply-push selling system
Swensen, David
Systemic risk

T. Rowe Price
Taleb, Nassim Nicholas
Tangible costs
Target maturity funds
Taxes
as cost
deferred
embedded alpha and
on index funds
on mutual fund returns
portfolio turnover and
speculation and
Technology stocks
Theory of Economic Development (Schumpeter)
The Theory of Moral Sentiments (Smith)
Thorndike, Doran, Paine and Lewis, Inc.
Three-tier bond portfolio
TIAA-CREF
Time-weighted returns
Time zone trading
Timing penalty
Tobin, James
Tocqueville, Alexis de
Total Bond Market Index Fund
Total return
Total Stock Market Index Fund
Total (U.S.) Stock Market Index Fund
Transaction costs
Trends, in mutual fund industry
Treynor, Jack
Trust and Honesty (Frankel)
Trustees’ Equity Fund
Tsai, Gerald
Tufano, Peter
Twain, Mark
12b-1 fees
Tyco International

Ulysses (Tennyson)
Uncertainty, and risk
Unconventional Success (Swensen)
Union Fire Company
United States financial system

Value Index Fund
Values, business and investment
concerns over decline of
current state of
profession versus business
Values, personal and professional
erosion of
liberal education and
Value versus growth stocks
Vance, Sanders & Co.
Vanguard 500
SEC endorsement of
Vanguard 500 Index Fund
Vanguard Group of Investment Companies
alpha versus omega
as buyer-driven, no-load channel
as commercial and artistic success
creation of
entrepreneurship and invention of
experiment in mutual fund governance
as first index fund
growth of
investment wisdom of
market share
naming of
regulatory opposition and
shareholder-first structure
Vanguard’s Wellington Fund
Variable annuities
Venture capital
Virtue
Virtues
Vishny, Robert W.

War expenditures
The Way to Wealth (Franklin)
The Wealth of Nations (Smith)
Welch, Jack
Wellington Fund
average annual returns
Wellington Group
Wellington Management Company
Weyl, Glen
Whistleblowers
Wien, Byron
Wilde, Oscar
Wilshire 5000 Total Market Index
Winfield Fund
Woolman, John
WorldCom
WorldCom/MCI

Zurich