Alpha Architect Research Blog

The Newest Alpha Architect Research and Insights


Can You Spot the Closet-Indexer? Introducing Visual Active Share

2016-06-23 13_22_14-2016-WB-2504 Alpha Architect Can you spot the closet indexer
Readers, We're working on some internal tools to help investors make more informed decisions. The primary challenge that investors face is understanding what they are actually buying versus what they are being sold. Active share and high level portfolio statistics (e.g., holdings or ...

Leveraging Persuasion Science to Nudge Investors in a Better Direction

choice architect
Making choices can be difficult, but possible alternatives can be arranged in a way that facilitates effective decision-making. This is the idea behind “choice architecture,” an concept that is explored in the book, “Nudge,” by Richard Thaler and Cass Sunstein. Here ...

Digging Deeper into Adaptive Asset Allocation

book cover
In some ways, investing is simple. After all, we all want the same things. High returns. Low volatility. Small max drawdowns. Unfortunately, it's very difficult--if not impossible--to have your cake and eat it too. There are always tradeoffs among these desires that ...

Invert, always invert: Will Stocks Diversify Bond Investments in the Future?

50 Worst Bond Months
My last post, "Will bonds deliver crisis alpha in the next crisis?," created quite a stir on the blogosphere. The underlying assumption of the analysis is that stocks are a core component of a portfolio and bonds are included to diversify the ...

Fascinating insights from ETF industry veteran Eric Balchunas

etf industry maze
In the world of ETFs, while there are many people who claim a deep understanding of ETFs, there are few who actually possess it. Eric Balchunas is an exception. Source: https://twitter.com/EricBalchunas Eric has a deep bench of experience in the ETF industry. For ...

Want to Know the Secret to Inefficient Prices? Lazy Prices.

Lazy prices
How do you handle repetitive tasks? If you're like most people, you work through a task in a variety of ways, find the most efficient approach, and then stick to that workflow. Consider email address autofill, automatic payment plans, or automatic renewal of ...

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