New Index Funds

[doli]

Over at the New York Times there is an article,
http://www.nytimes.com/2007/01/21/business/yourmoney/21etfs.html?ref=business
about new index funds that hope to beat the market.

Are these mutual funds or ETFs? It wasn't clear to me. But the idea of reweighting an existing index or constructing a new index might be profitable.

 

[nazzdack]

Fundamental data can still be "manipulated" with aggressive accounting methods..........and fraud.

 

[hans37]

There is a valid point with the weakness of market capitalization indexes having overvalued securities.


However the weakness of the new index strategies appears to be high turnover ratio increasing costs and potentially less tax efficient.