Monday, April 23, 2007

New Index Funds.................................................

USA Today carried an interesting article last week about Index Funds.

It's a debate between John Bogle, founder of the Vanguard Group, and Jeremy Siegel, a professor at the University of Pennsylvania's Wharton School and author of Stocks for the Long Run.

The essence of the debate centers around the fact that dividend paying stocks tend to do better over the long run, as compared to stocks in general.

The problem is that dividend paying stocks tend to be in fields like financial services. By emphasizing those stocks, the investor is avoiding other fast growing fields, such as technology stocks, which rarely pay dividends.

Read the debate... and make up your own mind.

Recommended.


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