Supercharge Your Portfolio With a Nontraditional Index Fund
The payoff of a custom index approach that takes advantage of academic research can be substantial.
If you think all index exchange-traded funds (ETFs) and mutual funds are created equal, I have news for you: They aren’t. This is good news for investors willing to venture beyond core index funds like those offered by Vanguard, Fidelity, BlackRock and others.
The payoff of a nontraditional approach can be substantial, whether you’re seeking returns from a total market index fund or something more specific like small-cap value stocks. When I say substantial, I mean it.
My goals in this article are to:
Clarify what a nontraditional index fund is;
Differentiate it from an actively managed fund;
Show some real-time results from nontraditional index funds;
Explain how those results came about; and
Suggest how you can use nontraditional funds to boost your returns without going too far out on a limb.