Timeline of index funds
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This is a timeline of FIXME.
Contents
Big picture
| Time period | Development summary |
|---|---|
| 1990s | "As the 1990s began and the evidence poured in about the success of index investing"[1] |
Full timeline
| Year | Event type | Details |
|---|---|---|
| 1960 | The first theoretical model for an index fund is suggested by Edward Renshaw and Paul Feldstein, both students at the University of Chicago. While their idea for an "Unmanaged Investment Company" garners little support, it would start off a sequence of events in the 1960s that would lead to the creation of the first index fund in the next decade.[2][3] | |
| 1967 | Qualidex Fund, Inc., a Florida Corporation, is chartered by Richard A. Beach. | |
| 1971 | Wells Fargo launches the first index fund, consisting of an equal weighting of all the stocks listed on the New York Stock Exchange, about 1,500. However, constant rebalancing and excessive transaction costs turn the running of the fund very difficult.[4] | |
| 1972 | The first index fund is created by Qualidex Fund, Inc.[3] | |
| 1973 | Wells Fargo launches new fund tracking the S&P 500 in a market-cap weighted closed-end fund for institutional investors.[4] | |
| 1973 | John McQuown and David G. Booth of Wells Fargo, and Rex Sinquefield of the American National Bank in Chicago, establish the first two Standard and Poor's Composite Index Funds. | |
| 1973 | Rex Sinquefeld launches "the first publicly marketed index fund" at the American National Bank of Chicago, for institutional investors.[4] | |
| 1974 | "John C. Bogle founded the Vanguard Group of Investment Companies in 1974".[3] | |
| 1974 | The first multiclient index fund is probably launched by Batterymarch Financial Management.[5] | |
| 1975 | John Bogle founds The Vanguard Group to create a new way of investing.[4] | |
| 1975 | The Vanguard Group creates the world’s first index mutual fund.[1] | |
| 1976 | " On Aug. 31, 1976, it launched as the First Index Investment Trust with little fanfare but soon attracted much derision for its central premise: That just buying and holding the broad stock market would provide better results than trying to beat it by picking stocks. "[6][7] | |
| 1984 | "The 500 Index set the standard for the index funds that followed Vanguard’s innovation, first at Wells Fargo (1984), then at Colonial (born 1986; died 1993, R.I.P.), and then at Fidelity (1988)."[1] | |
| 1984 | " Vanguard didn’t have any competition until 1984, when Wells Fargo created the second index fund."[8] | |
| 1986 | "The 500 Index set the standard for the index funds that followed Vanguard’s innovation, first at Wells Fargo (1984), then at Colonial (born 1986; died 1993, R.I.P.), and then at Fidelity (1988)."[1] | |
| 1987 | "So in 1987 we created our second equity index fund, Vanguard Extended Market Index Fund. This was a “completion fund,” holding the mid- and small-cap stocks that were not included in the S&P 500."[1] | |
| 1988 | "The 500 Index set the standard for the index funds that followed Vanguard’s innovation, first at Wells Fargo (1984), then at Colonial (born 1986; died 1993, R.I.P.), and then at Fidelity (1988)."[1] | |
| 1990 | ". The First Index Investment Trust, renamed the Vanguard 500, didn’t reach $1 billion in assets until 1990"[8] | |
| 1996 | Warren Buffet writes in the Annual Report of Berkshire Hathaway Corporation:
Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals.[1] | |
| 2007 | The Vanguard 500 Index Fund is the largest mutual fund in the world.[4] | |
| 2008 | Warren Buffett makes a bet that an S&P 500 index fund would beat a basket of actively managed hedge funds over 10 years. By the end of 2017, it would be clear Buffett won the bet.[9] | |
| 2017 | "Bitwise established the world’s first cryptocurrency-based index fund, called the Bitwise 10 Private Index fund, in 2017. The Bitwise approach was based on the cryptocurrencies in their Bitwise 10 Large Cap Crypto Index — a collection of the ten largest coins, weighted by their 5-year diluted market capitalization. The index included Bitcoin, Etherium, XRP, EOS, Litecoin, Bitcoin Cash, Steller, Dash, Monero, and Zcash. Unfortunately for retail investors, the index only accepted accredited investors and a minimum investment of $250K."[3] |
Meta information on the timeline
How the timeline was built
The initial version of the timeline was written by FIXME.
Funding information for this timeline is available.
Feedback and comments
Feedback for the timeline can be provided at the following places:
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What the timeline is still missing
Timeline update strategy
See also
External links
References
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 "Vanguard's index funds: A history of evolution for investors". foxbusiness.com. Retrieved 16 April 2019.
- ↑ Fox, Justin (2011). "Chapter 7: Jack Bogle takes on the performance cult (and wins)". The Myth of the Rational Market. USA: HarperCollins. pp. 111–112. ISBN 978-0-06-059903-4.
- ↑ 3.0 3.1 3.2 3.3 "The History of Index Funds & The Future of Diversifying Your Crypto Investments". medium.com. Retrieved 16 April 2019.
- ↑ 4.0 4.1 4.2 4.3 4.4 Carrel, Lawrence. ETFs for the Long Run: What They Are, How They Work, and Simple Strategies for Successful Long-Term Investing.
- ↑ Johnson, Bruce. The Hedge Fund Fraud Casebook.
- ↑ "A Brief History of Indexing". morningstar.com. Retrieved 16 April 2019.
- ↑ "This Day In Market History: Vanguard Launches First Index Fund For US Retail Investors". benzinga.com. Retrieved 16 April 2019.
- ↑ 8.0 8.1 "Today in Market History, The First Index Fund". theirrelevantinvestor.com. Retrieved 16 April 2019.
- ↑ "Why Index Funds Should Be Every Investor's Best Friend". moneywise.com. Retrieved 15 April 2019.
