Timeline of index funds

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This is a timeline of FIXME.

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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.
1972 The first index fund is created by Qualidex Fund, Inc.[3]
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.
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.[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. "[5]
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]
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]
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]
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.[6]
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]

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How the timeline was built

The initial version of the timeline was written by FIXME.

Funding information for this timeline is available.

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See also

External links

References

  1. 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. 
  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. Johnson, Bruce. The Hedge Fund Fraud Casebook. 
  5. "A Brief History of Indexing". morningstar.com. Retrieved 16 April 2019. 
  6. "Why Index Funds Should Be Every Investor's Best Friend". moneywise.com. Retrieved 15 April 2019.