The Simple Story of our Approach

To be fair, I sometimes compare the Mindful Wealth approach to indexing because that's where it started. The academic rigor that came out of index funds is the foundation of everything we do at Mindful Wealth. Indices were first used to track the performance of stocks and provide a benchmark for an active trading strategy. Did the generic pool of stocks beat your picks or not?

When index funds were created as investable securities, the focus shifted from benchmarking active portfolios to aggressively studying how pools of stocks worked. What characteristics could be attributed to a given set of stocks, and what can we glean from their behavior together?

So, if you've ever heard me compare our strategy to indexing, there's a fair reason. We rarely, however, use actual index funds. Here's a short paper that helps examine this topic in a little more detail. Click the image to download. Enjoy!