Difference between revisions of "Timeline of index funds"

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| 1976 || || The First Index Investment Trust is launched. It would soon attract 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.<ref name="A Brief History of Indexing">{{cite web |title=A Brief History of Indexing |url=https://www.morningstar.com/articles/390749/a-brief-history-of-indexing.html |website=morningstar.com |accessdate=16 April 2019}}</ref><ref>{{cite web |title=This Day In Market History: Vanguard Launches First Index Fund For US Retail Investors |url=https://www.benzinga.com/general/education/18/08/12290408/this-day-in-market-history-vanguard-launches-first-index-fund-for-u |website=benzinga.com |accessdate=16 April 2019}}</ref>
 
| 1976 || || The First Index Investment Trust is launched. It would soon attract 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.<ref name="A Brief History of Indexing">{{cite web |title=A Brief History of Indexing |url=https://www.morningstar.com/articles/390749/a-brief-history-of-indexing.html |website=morningstar.com |accessdate=16 April 2019}}</ref><ref>{{cite web |title=This Day In Market History: Vanguard Launches First Index Fund For US Retail Investors |url=https://www.benzinga.com/general/education/18/08/12290408/this-day-in-market-history-vanguard-launches-first-index-fund-for-u |website=benzinga.com |accessdate=16 April 2019}}</ref>
 
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| 1984 || || {{w|Wells Fargo}} creates the second index mutual fund (Stagecoach Corporate Stock Fund).<ref name="Today in Market History, The First Index Fund"/><ref>{{cite web |title=Father of passives has doubts about ETFs |url=https://www.ft.com/content/1cd71934-c716-11e4-8e1f-00144feab7de |website=ft.com |accessdate=16 April 2019}}</ref><ref name="Indexing for Maximum Investment Results">{{cite book |last1=Neubert |first1=Albert S. |title=Indexing for Maximum Investment Results |url=https://books.google.com.ar/books?id=e0UU58ceP-kC&pg=PA53&lpg=PA53&dq=%22wells+fargo%22+%22in+1984%22+%22index+fund%22&source=bl&ots=TiUCDQ1L-u&sig=ACfU3U0t9NYA4i17G2s3BFgY2AhCS1-anQ&hl=en&sa=X&ved=2ahUKEwiLy6jB8ePhAhUlH7kGHWk1BGIQ6AEwA3oECAkQAQ#v=onepage&q=%22wells%20fargo%22%20%22in%201984%22%20%22index%20fund%22&f=false}}</ref>
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| 1984 || || {{w|Wells Fargo}} creates the second index mutual fund (Stagecoach Corporate Stock Fund).<ref name="Today in Market History, The First Index Fund"/><ref>{{cite web |title=Father of passives has doubts about ETFs |url=https://www.ft.com/content/1cd71934-c716-11e4-8e1f-00144feab7de |website=ft.com |accessdate=16 April 2019}}</ref><ref name="Indexing for Maximum Investment Results">{{cite book |last1=Neubert |first1=Albert S. |title=Indexing for Maximum Investment Results |url=https://books.google.com.ar/books?id=e0UU58ceP-kC&pg=PA53&lpg=PA53&dq=%22wells+fargo%22+%22in+1984%22+%22index+fund%22&source=bl&ots=TiUCDQ1L-u&sig=ACfU3U0t9NYA4i17G2s3BFgY2AhCS1-anQ&hl=en&sa=X&ved=2ahUKEwiLy6jB8ePhAhUlH7kGHWk1BGIQ6AEwA3oECAkQAQ#v=onepage&q=%22wells%20fargo%22%20%22in%201984%22%20%22index%20fund%22&f=false}}</ref><ref name="The Power of Passive Investing: More Wealth with Less Work">{{cite book |last1=Ferri |first1=Richard A. |title=The Power of Passive Investing: More Wealth with Less Work |url=https://books.google.com.ar/books?id=Xpm6TQsf5J8C&pg=PA62&lpg=PA62&dq=%22wells+fargo%22+%22in+1984%22+%22index+fund%22&source=bl&ots=98epdmvn1e&sig=ACfU3U0ItBpoBhp_8BzZcU0Qi8F8lbp6vA&hl=en&sa=X&ved=2ahUKEwiLy6jB8ePhAhUlH7kGHWk1BGIQ6AEwBHoECAcQAQ#v=onepage&q=%22wells%20fargo%22%20%22in%201984%22%20%22index%20fund%22&f=false}}</ref>
 
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| 1985 || || The first bond index fund is in the early conceptual stages.<ref name="Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies">{{cite book |last1=Martellini |first1=Lionel |last2=Priaulet |first2=Philippe |last3=Priaulet |first3=Stéphane |title=Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies |url=https://books.google.com.ar/books?id=zuCSvSbURmoC&pg=PA213&lpg=PA213&dq=%22index+fund%22+%22in+1985%22&source=bl&ots=W_kkZzN7Hg&sig=ACfU3U3JcuX2ApeTvyLamiYIp3m3kott7Q&hl=en&sa=X&ved=2ahUKEwjEx_Tg69nhAhWWH7kGHa5nCj04ChDoATAKegQICBAB#v=onepage&q=%22index%20fund%22%20%22in%201985%22&f=false}}</ref>   
 
| 1985 || || The first bond index fund is in the early conceptual stages.<ref name="Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies">{{cite book |last1=Martellini |first1=Lionel |last2=Priaulet |first2=Philippe |last3=Priaulet |first3=Stéphane |title=Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies |url=https://books.google.com.ar/books?id=zuCSvSbURmoC&pg=PA213&lpg=PA213&dq=%22index+fund%22+%22in+1985%22&source=bl&ots=W_kkZzN7Hg&sig=ACfU3U3JcuX2ApeTvyLamiYIp3m3kott7Q&hl=en&sa=X&ved=2ahUKEwjEx_Tg69nhAhWWH7kGHa5nCj04ChDoATAKegQICBAB#v=onepage&q=%22index%20fund%22%20%22in%201985%22&f=false}}</ref>   
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| 1990 || || The First Index Investment Trust, renamed the Vanguard 500, reaches U$1 billion in assets 1990.<ref name="Today in Market History, The First Index Fund">{{cite web |title=Today in Market History, The First Index Fund |url=https://theirrelevantinvestor.com/2017/08/31/today-in-market-history-the-first-index-fund/ |website=theirrelevantinvestor.com |accessdate=16 April 2019}}</ref>   
 
| 1990 || || The First Index Investment Trust, renamed the Vanguard 500, reaches U$1 billion in assets 1990.<ref name="Today in Market History, The First Index Fund">{{cite web |title=Today in Market History, The First Index Fund |url=https://theirrelevantinvestor.com/2017/08/31/today-in-market-history-the-first-index-fund/ |website=theirrelevantinvestor.com |accessdate=16 April 2019}}</ref>   
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| 1990 || || Vanguard launches an extended market index, tracking the Wilshire 4500 Index, which is composed of all investable U.S. stocks not held in the [[w:S&P 500 Index|S&P 500]].<ref name="The Power of Passive Investing: More Wealth with Less Work"/>
 
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| 1991 || || Galaxy Funds opens an index fund of govenment long bonds.<ref name="Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies"/>   
 
| 1991 || || Galaxy Funds opens an index fund of govenment long bonds.<ref name="Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies"/>   

Revision as of 08:20, 22 April 2019

This is a timeline of FIXME.

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.[4]
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.[5]
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.[5]
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.[5]
1974 American investor John C. Bogle founds the Vanguard Group of Investment Companies.[6][7][8][3]
1974 The first multiclient index fund is probably launched by Batterymarch Financial Management.[9]
1975 John Bogle founds The Vanguard Group to create a new way of investing.[5]
1975 The Vanguard Group creates the world’s first index mutual fund.[1]
1976 The First Index Investment Trust is launched. It would soon attract 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.[10][11]
1984 Wells Fargo creates the second index mutual fund (Stagecoach Corporate Stock Fund).[12][13][14][15]
1985 The first bond index fund is in the early conceptual stages.[16]
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]
1986 The first bond index fund for individual investors is formed.[14]
1987 The Vanguard Extended Market Index Fund is created.[1]
1987 – 1990 The conceptual framework of the Vanguard index fund "family" is established, and the implementation of the strategy begins.[14]
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, reaches U$1 billion in assets 1990.[12]
1990 Vanguard launches an extended market index, tracking the Wilshire 4500 Index, which is composed of all investable U.S. stocks not held in the S&P 500.[15]
1991 Galaxy Funds opens an index fund of govenment long bonds.[16]
1991 Charles Schwab Co. opens its Short-Term Bond Market Index.[16]
1992 The Vanguard Total Stock Market Index Fund is designed to provide investors with exposure to the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks.[17]
1993 Vanguard creates the first specific-maturity bond index funds. The Long-Term Bond, Intermediate-Term Bond, and Short-Term Bond Portfolios of Vanguard Bond Index Fund are modeled after the comparable segments of the Lehman Brothers Aggregate Bond Index.[14][16]
1994 – 1996 The index fund concept becomes firmly established in the minds of serious investors, and gains considerable attention in the press.[14]
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]
1996 Vanguard launches the Total International Portfolio as a "fund of funds", a composite of underlying European, Pacific, and Emerging Markets Portfolios.[14]
1997 The acceptance of index funds accelerates.[14]
1999 Index Fund Advisors is founded in California as an investment advisory and wealth management company.[18][19]
2007 To date, the Vanguard 500 Index Fund remains the largest mutual fund in the world.[5]
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.[20]
2012 (June) As of date, there are about 1200 index ETFs in the United States, with about 50 actively managed ETFs. Index ETF assets are about US$1.2 trillion, compared with about $7 billion for actively managed ETFs.[21]
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 User:Sebastian.

Funding information for this timeline is available.

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  • FIXME

What the timeline is still missing

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See also

External links

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 "Vanguard's index funds: A history of evolution for investors". foxbusiness.com. Retrieved 16 April 2019. 
  2. 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. 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. "INDEX FUND". alphazadvisors.com. Retrieved 22 April 2019. 
  5. 5.0 5.1 5.2 5.3 5.4 Carrel, Lawrence. ETFs for the Long Run: What They Are, How They Work, and Simple Strategies for Successful Long-Term Investing. 
  6. "The Vanguard Group Of Investment Companies". encyclopedia.com. Retrieved 22 April 2019. 
  7. "John C. Bogle, Founder of Financial Giant Vanguard, Is Dead at 89". nytimes.com. Retrieved 22 April 2019. 
  8. "A look back at the life of Vanguard's founder". investornews.vanguard. Retrieved 22 April 2019. 
  9. Johnson, Bruce. The Hedge Fund Fraud Casebook. 
  10. "A Brief History of Indexing". morningstar.com. Retrieved 16 April 2019. 
  11. "This Day In Market History: Vanguard Launches First Index Fund For US Retail Investors". benzinga.com. Retrieved 16 April 2019. 
  12. 12.0 12.1 "Today in Market History, The First Index Fund". theirrelevantinvestor.com. Retrieved 16 April 2019. 
  13. "Father of passives has doubts about ETFs". ft.com. Retrieved 16 April 2019. 
  14. 14.0 14.1 14.2 14.3 14.4 14.5 14.6 Neubert, Albert S. Indexing for Maximum Investment Results. 
  15. 15.0 15.1 Ferri, Richard A. The Power of Passive Investing: More Wealth with Less Work. 
  16. 16.0 16.1 16.2 16.3 Martellini, Lionel; Priaulet, Philippe; Priaulet, Stéphane. Fixed-Income Securities: Valuation, Risk Management and Portfolio Strategies. 
  17. "Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)". investor.vanguard.com. Retrieved 18 April 2019. 
  18. "Careers at Index Fund Advisors". ifa.com. Retrieved 22 April 2019. 
  19. "Mark Hebner". ifa.com. Retrieved 22 April 2019. 
  20. "Why Index Funds Should Be Every Investor's Best Friend". moneywise.com. Retrieved 15 April 2019. 
  21. "ETF Statistics For June 2012: Actively Managed Assets Less Than 1%". ETF Daily News. Archived from the original on December 12, 2017. Retrieved December 12, 2017.