Talk:Enhanced indexing
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The content of this article has been derived in whole or part from http://www.indexvalue.com. Permission has been received from the copyright holder to release this material. Evidence of this has been confirmed and stored by VRT volunteers, under ticket number 2006032410005844. This template is used by approved volunteers dealing with the Wikimedia volunteer response team system (VRTS) after receipt of a clear statement of permission at permissions-enwikimedia.org. Do not use this template to claim permission. |
POV
editI think there are some POV issues with this topic. "Enhanced Indexing" runs counter to the theory of indexing. Isn't it just a form of active management, dressed up with a pretty name? I will put up a POV flag shortly. -MegaHasher 22:02, 16 March 2006 (UTC)
- Be my guest; it was disguised as an advert to start but I removed the link to advertiser. The article definitely has POV issues. Andy Saunders 22:30, 16 March 2006 (UTC)
- I respectfully disagree. Enhanced indexing is a lot closer to indexing than it is to active management. However, it represents a significant difference from traditional indexing as explained in the article. Your flag is based more on your biases than on the facts. Do more work into it. I could say that Democracy is just another form of Government isn't it? Communism, Totalitarianism, Democracy - whats the difference. If there was a fairly neutral article on democracy and you happened to be a communist, you could flag that as having a biased point of view. Or take Warren Buffett, isn't he just another lousy investor with a lot of money? If you think the point of view is biased (and I respect your right to do so) and since you seem to have stong opinions on the topic (hopefully based on some expertise or research) would it not be more productive to make reasonable edits that could improve the original content to make it more "factual or neutral" or else add another topic along the lines of Debate about the Nature of Enhanced Indexing which says that some people say its just active management in disguise and point out the arguments for and against (Id be happy to supply the against on this proposition by the way). The differences between enhanced indexing and indexing, as clearly laid out in the original article are substantial enough that it makes it (in the aggregate) enough of a leap that it deserves to be available to those who care to look into it. Over $100B in assets are managed this way and this is growing probably more rapidly than other forms of indexing which also gives credence to the validity of the distinction. I am removing the POV flag based on the above but invite you to edit the text if you feel you can make a contribution to the content to make it less biased or extend it is some what that would be helpful to the community. Thanks for your thoughts and efforts on behalf of the Wiki commons. (written by kenman2000)
- The current material reads like a sales literature rather than an encyclopedia entry. I guess it could be fixed, but "Enhanced Indexing" is another catch-all categorization, much like "improved burger". It also has a marketing tone. -MegaHasher 17:55, 19 March 2006 (UTC)
POV flag
editPlease do not delete the "pov" flag. It is there to recruit people to fix this page. -MegaHasher 18:22, 19 March 2006 (UTC)
Material source
edit"As we have already discussed in the indexing section, however, many active funds and managers don't keep up with the index over the long-term, especially net of fees."
- I don't see an existing indexing section; is the material copied out of some other source? Before I start editing I like to make sure that kenman wrote this, and is not just a copyvio piece. -MegaHasher 22:43, 19 March 2006 (UTC)
- Game over; it is a copyvio of http://www.indexvalue.com/EnhancedIndexing.htm -MegaHasher 04:18, 20 March 2006 (UTC)
Hi, I did get permission to use the material from the http://www.indexvalue.com website. If you want proof, you can either go to the site and write to them directly, or else I suppose I can get something in writing from them as well. I support the entry should have made it clear that part of it was taken with their permission (so in that respect it was my bad) User:Kenman2000
Wikipedia should have an email (I was cc: on it) from owner@indexvalue.com confirming permission. The email was sent to permissions@wikipedia.org. They did say in the email that the artile needs to acknowledge that they are source, so when the article is restored, we do need to just make sure that the attribution is clear (which I would be happy to do) after someone with administative powers is able to verify the permissions based on the email and confirm that is would be ok to get rid of the copyright violation flag. User:Kenman2000
They need to release the page under GNU Free Documentation License. -MegaHasher 19:54, 24 March 2006 (UTC)
I believe they have done so now. See the very bottom of the page. http://www.indexvalue.com/EnhancedIndexing.htm. I guess you can remove the violation now, after you verify it yourself.
Advertisement
editSome examples: "Believe it or not" "innovative techniques" "intelligently construct proprietary or dynamic indices" "variety of flavors" "intelligent trading algorithms" "our model enhanced approach enjoys" "twice as much!" "properly harnessed, is a powerful ally " Please delete. Also add skeptical sources and criticisms. Shawnc 08:31, 16 July 2006 (UTC)
- I tried to edit away the most obvious advertisement materials. There may still be a few sentences of advertisements in there. I removed the reference to indexvalue.com since that is where the problem materials came from in the first place. MegaHasher 06:49, 9 July 2007 (UTC)
All flags are removed since all the issues are resolved apart from more rigorous treatment of the subject. -Neeraj —Preceding unsigned comment added by 192.43.227.18 (talk) 07:32, 23 September 2007 (UTC)
Major rewrite
editI've removed information that is repeated on the passive management and active management pages. I've also rewritten the article to remove any advertising material (although the term "enhanced indexing" is, to some extent, an advertising gimmick by investment companies). Please feel free to revert the changes, or post another request on WP:FINANCE. Finnancier 04:59, 29 September 2007 (UTC)
Looks Good
editThe current status of the article looks good to me. Looks like an objective look at virtually all of the several POVs on this topic.Altruistguy (talk) 23:02, 27 October 2010 (UTC)
On performance of Enhanced Index strategies
editThe current version only speaks to cost differential vs. Index Funds and vs. Active Mamagement:
"The success of enhanced indexing is likely correlated to the degree of extra cost running an enhanced index fund. Tax-managed strategies are not expensive to implement, while the active management strategies would incur a higher cost structure."
While this may be true, the 'enhancement' from the Index is at least intended to deliver excess return. So it seems there are really three determinants of excess return:
1. Effectiveness of the index construction to accurately replicate the underlying index 2. Cost of the strategy 3. Excess return generated by the actively 'enhanced' portion of the portfolio.