Riding High with Index Funds
Posted on Thursday, March 20, 2014
The continued growth of index funds is hard to ignore. In 2012 investors put $59 billion of net new cash flow into index mutual funds, according to the Investment Company Institute. Equity indexing just within mutual funds increased its share in 2012, reaching 17.4%.
Exchange-traded funds also grew in 2012. These index funds that can be bought and sold during the trading day like stocks, rose to $1.3 trillion in total net assets at the end of 2012, with almost 1,200 ETFs on the market, compared with only 102 ETFs in 2011 amounting to $83 billion in combined net assets.
SmallCap Informer’s editors in the January issue took a look at MSCI Inc., a leading provider of indexes employed by mutual fund and ETF companies, which offers stock pickers the chance to capitalize on passive investing’s growth. The analysis describes the company, offering a detailed analysis of its growth, quality and valuation, for investors’ consideration.
In the same issue, SmallCap Informer picks avocados as a promising investment, spotlighting a company that plays a leading role in the distribution and preparation of avocados and other perishable foods, and evaluates prospects for its future. Click here to subscribe to SmallCap Investor.