Mutual Funds: Portfolio Structures, Analysis, Management, and Stewardship -- Contents -- Introduction -- Part I: Mutual Funds: Nature, Regulation, and Costs -- Chapter 1: The Nature of Mutual Funds -- ATTRIBUTES OF THE OPEN-END MUTUAL FUND -- MUTUAL FUNDS AND THE COMPETITIVE ENVIRONMENT -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 2: Mutual Fund Regulation and Issues -- HISTORICAL PERSPECTIVE -- REGULATION OF OPEN-END FUNDS -- RECENT REGULATORY ISSUES IN OPEN-END FUNDS -- CURRENT REGULATORY ISSUES IN FUNDS -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 3: The Economics of Mutual Funds -- SIZE AND STRUCTURE OF THE MUTUAL FUND INDUSTRY -- MUTUAL FUND CREATION AND MORTALITY -- REGULATION -- SCALE ECONOMIES: EXPENSES AND FEES -- SCALE DISECONOMIES: FUND RETURNS -- BENEFITS OF MUTUAL FUND INVESTING TO FUND SHAREHOLDERS -- DRAWBACKS OF MUTUAL FUND INVESTING -- FINANCIAL BARRIERS TO MUTUAL FUND INVESTING AND REDEMPTION -- MUTUAL FUND GOVERNANCE AND AGENCY PROBLEMS -- FUND MANAGER TOURNAMENT BEHAVIOR -- FUND FAMILY MARKETING AND CROSS-SUBSIDIZATION -- CONCLUSIONS -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 4: Mutual Fund Fees and Expenses -- LOADS -- EXPENSES -- MANAGEMENT FEES -- RULE 12B-1 FEES -- "OTHER" EXPENSES WITHIN THE EXPENSE RATIO -- LOAD VERSUS EXPENSE RELATION -- DISTRIBUTION CHANNEL -- ETFs AND CLOSED-END MUTUAL FUNDS -- TAXES -- FEES AND EXPENSES INTERNATIONALLY -- CHARGES NOT INCLUDED IN THE EXPENSE RATIO -- PARTITIONING ACTIVELY MANAGED MUTUAL FUND FEES BASED ON ALPHA AND BETA SEPARATION -- CONCLUSIONS -- REFERENCES -- ABOUT THE AUTHOR -- Part II: The Realities and Analogies of Investing -- Chapter 5: How Financial Markets Work -- HOW MARKETS SET PRICES -- GREAT COMPANIES DO NOT MAKE HIGH-RETURN INVESTMENTS -- FOR EVERY BUYER THERE MUST BE A SELLER -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 6: Active versus Passive Investing.

WHOSE INTERESTS DO THEY HAVE AT HEART? -- WHEN EVEN THE BEST ARE NOT LIKELY TO WIN THE GAME -- INVESTMENT GRAFFITI -- OUTFOXING THE BOX -- APPENDIX: INVESTMENT VEHICLE RECOMMENDATIONS -- REFERENCES -- ABOUT THE AUTHOR -- Part III: Fund Types and Comparative Performance, Efficient Markets, Asset Allocation, and Morningstar Analysis -- Chapter 7: Efficient Markets and Mutual Fund Investing: The Advantages of Index Funds -- JUSTIFICATION FOR USING INDEX FUNDS -- EVIDENCE FROM U.S. INDEX FUNDS -- EVIDENCE IN FAVOR OF PASSIVE MANAGEMENT IN WORLD FINANCIAL MARKETS -- ACTIVE VERSUS PASSIVE MANAGEMENT IN THE BOND MARKET -- COSTS ARE IMPORTANT DETERMINANTS OF NET RETURNS -- MUTUAL FUNDS VERSUS ETFs -- STOCK MARKET RETURNS VERSUS INVESTOR RETURNS -- STYLE OR FACTOR TILTS IN MUTUAL FUNDS -- CONCLUSIONS -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 8: Asset Allocation: Design and Care of Portfolios -- POLICY ALLOCATION -- REBALANCING -- STRATEGIC ASSET ALLOCATION -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 9: The Morningstar Approach to Mutual Fund Analysis-Part I -- CYCLE OF FEAR AND GREED -- RISK MANAGEMENT -- APPROACHES TO PORTFOLIO CONSTRUCTION -- TOOLS FOR ANALYZING FUNDS -- MUTUAL FUND ANALYSIS TOOLS -- RETURNS-BASED ANALYSIS -- SAMPLE FUND COMPARISON-HISTORICAL PERFORMANCE -- RISK AND RISK-ADJUSTED PERFORMANCE MEASURES -- MODERN PORTFOLIO THEORY STATISTICS -- SAMPLE FUND COMPARISON-RISK AND RISK-ADJUSTED PERFORMANCE MEASURES -- MORNINGSTAR RATINGTM FOR FUNDS -- CONCLUSIONS -- ABOUT THE AUTHORS -- Chapter 10: The Morningstar Approach to Mutual Fund Analysis-Part II -- HOLDINGS-BASED ANALYSIS -- INCOME, COSTS, AND TAXES -- QUALITATIVE ANALYSIS -- CONCLUSIONS -- ABOUT THE AUTHORS -- Chapter 11: Building a Portfolio of Mutual Funds: A Morningstar Approach -- APPROACHES TO PORTFOLIO CONSTRUCTION -- FUND SELECTION -- PORTFOLIO 1: A LESS DIVERSIFIED APPROACH.

PORTFOLIO 2: A WELL-BALANCED APPROACH -- ANALYSIS OF THE PORTFOLIOS -- ONGOING MAINTENANCE -- CONCLUSIONS -- ABOUT THE AUTHORS -- Chapter 12: Performance of Actively Managed versus Index Funds: The Vanguard Case -- INTRODUCTION -- METHODOLOGY -- IN DEFENSE OF GEOMETRIC ALPHA -- TRACKING INDEXES FOR THE OLD FUNDS -- PROWESS OF STYLE JUMPING AND EQUITY CHOICE FOR THE OLD FUNDS -- PRESCIENT STYLE JUMPING? -- ALPHA FELL -- HOW HAVE THE YOUNG FUNDS PERFORMED? -- DID R2 PREDICT PERFORMANCE (INCLUDING YOUNG FUNDS)? -- IS THE PAST PROLOGUE? DID PAST PERFORMANCE PREDICT FUTURE PERFORMANCE? -- DID A COMBINATION OF R2 AND PAST ALPHA PREDICT PERFORMANCE? -- DID MORNINGSTAR STARS PREDICT? -- DID DAN WIENER'S RATINGS PREDICT? -- BEST PREDICTION EQUATION -- IS WIENER RIGHT THAT VANGUARD'S MANAGED FUNDS ARE BETTER THAN ITS INDEX FUNDS? -- CONCLUSIONS -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 13: Classic and Enhanced Index Funds: Performance and Issues -- VANGUARD -- DIMENSIONAL FUND ADVISORS -- WISDOMTREE'S APPROACH TO FUNDAMENTAL INDEXATION -- SOME EVALUATIONS OF FUNDAMENTAL INDEXATION -- STYLE ANALYSIS TO COMPARE VANGUARD AND DFA -- WISDOMTREE VERSUS VANGUARD: WHICH IS BETTER? -- CONCLUSIONS -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 14: Mutual Funds versus Exchange-Traded Funds -- A BRIEF HISTORY OF ETFs -- HOW OPEN-END PORTFOLIO ETFs WORK -- IMPROVING ETFs -- ETF AND MUTUAL FUND COMPARATIVE ECONOMICS -- CONCLUSIONS -- REFERENCES -- ABOUT THE AUTHOR -- Part IV: Mutual Funds at the Crossroads -- Chapter 15: The Challenge to Mutual Fund Stewardship -- CHALLENGE TO STEWARDSHIP -- INDUSTRY STRUCTURE AND SCANDALS -- MISALIGNED INTERESTS -- MARKET RETURNS VERSUS FUND AND INVESTOR RETURNS -- FUND STEWARDSHIP -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 16: Identifying Mutual Fund Stewardship -- FIVE DIMENSIONS OF ANALYSIS -- COMPLEMENTS TO BOGLE'S APPROACH.

STEWARDSHIP FUND (OR NOT) -- CONCLUSIONS -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 17: Normative Transparency of Mutual Fund Disclosure -- DISCLOSURE AS AN EFFECTIVE REGULATORY TOOL -- NORMATIVE TRANSPARENCY OF DISCLOSURE -- DISCLOSURE TEMPLATE -- NORMATIVE TRANSPARENCY AND THE EXPENSE RATIO -- CURRENT SEC EXPENSE RATIO -- THE NEW TOTAL EXPENSE RATIO -- 12b-1 FEES AND MULTIPLE SHARE CLASSES -- TRANSACTION COST ISSUES -- CONCLUSIONS: NORMATIVE DISCLOSURE, THE -- EXPENSE RATIO, AND REGULATORY CHANGE -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 18: A Design for the Mutual Funds of the Future -- THE VANGUARD VISION -- A DESIGN FOR THE FUTURE -- CONCLUSIONS -- REFERENCES -- ABOUT THE AUTHOR -- Index.