AAII: The American Association of Individual Investors
Past Journal Issues:

Receive a FREE copy of this month's AAII Journal today

100% Privacy Guaranteed.

Editor's Note

By Charles Rotblut, CFA

Six months ago, Charley Ellis discussed in these pages how improvements in computer power, greater interest in MBA programs and much higher compensation has increased competition within the investment industry (“Competition Has Made Indexing a Winner’s Game,” November 2016 AAII Journal). One way these trends have manifested themselves is in the search for anomalies. Anomalies are factors influencing a security’s returns unexplained by the capital asset pricing model. (The CAPM calculates returns as the volatility-adjusted premium over a risk-free asset.)

Research efforts into ways to earn a premium return have likely occurred since financial markets first existed. If there is a chance to make money, someone is going to work on a way to make more of it.

In the field of investing, we’re seeing this innovation partially play out in research on anomalies (aka factors). It’s being pitched under the snazzier term of “smart beta.” Some of the research is straightforward; some of it is more esoteric. So much research in the subject has been done that former American Finance Association president John Cochrane once wrote, “Now, we have a zoo of new factors” (The Journal of Finance, July 19, 2011).

Continue Reading »

The AAII Journal

Free to members and published 12 times a year, the AAII Journal provides you with a continuing stream of insight and ideas that focus on how you can improve your investment results. Unlike most magazines, the AAII Journal is unbiased, educational and contains no advertising.

Below you can review the types of articles and topics we offer or, better yet, sign up for a FREE copy of the AAII Journal on the right of this page.

April 2017 Issue »


Factors Allow Investors to Think Differently About Diversification

By Larry Swedroe

Tilting a portfolio to a small number of factors, including value and size, can increase returns while at the same time reducing risk.

Explore the Many Benefits of AAII Membership...

The AAII Journal
The AAII Journal provides you with investment ideas, insights and direction that are designed to make you a smarter and more successful investor. Click here to get a free copy.
Your ticket to valuable AAII stock screens, model portfolios, investment mini-courses, FREE investor e-books and extensive investment research. Forbes Magazine says, "Best articles ... best stock screens."
AAII Model Portfolios
With a long history of beating the market, our portfolios give you proven, practical, real-world investment guidance and instruction. We offer Fund, ETF and Stock models free to all members.
Guide to the Top Mutual Funds
Providing data and insights on over 700 promising mutual funds, this guide will help direct you to the funds that are worthy of both your time and your money.
Stock Reports and Research
Through our long standing relationship with Standard & Poor's, members receive in-depth reports for a number of indexes and corporations.
Lists of Winning Stocks
AAII Stock Screens provide the investment philosophies and passing company lists from some of the most promising professionals and academics. Warren Buffet, Peter Lynch, John Neff and over 50 others are covered.
Local Chapter Membership
You get free enrollment to your choice of over 50 local AAII chapters plus numerous special interest groups around the country.