Morningstar Runs the Numbers

Inspired by Harper's Index (with a tip of the hat to FiveThirtyEight's Significant Digits blog), Morningstar Runs the Numbers uses a numbers-based approach to highlight recent Morningstar research, along with some outside news stories.

3 Funds Alex Bryan on the merits of a simple three-fund portfolio of index funds:

Not surprisingly, Ferri and Benke also found that the portfolio of index funds had a greater chance of outperforming a portfolio composed entirely of actively managed funds the longer it was held. This is because the cost advantage that index funds enjoy compounds over time, creating a bigger hurdle for active funds to overcome. Time also distinguishes luck from skill, which is scarce.

3 Centimeters If you've wondered about the number of recent of ties in Olympics swimming, here's the reason for not going to thousandths of seconds when timing swimmers:

In a 50 meter Olympic pool, at the current men's world record 50m pace, a thousandth-of-a-second constitutes 2.39 millimeters of travel. FINA pool dimension regulations allow a tolerance of 3 centimeters in each lane, more than ten times that amount. Could you time swimmers to a thousandth-of-a-second? Sure, but you couldn't guarantee the winning swimmer didn't have a thousandth-of-a-second-shorter course to swim.

On a related note, some researchers have suggested that one side of the pool in Rio was producing faster performances.

4 Myths Christine Benz debunks four myths about 401(k) loans:

But if a real need is there, taking a 401(k) loan is much preferable to resorting to other forms of financing; it also may better than tapping a home-equity loan or line of credit. The reason is that even as you'll owe interest on the 401(k) loan, you'll pay it back into your account rather than a bank, in contrast with credit card and home-equity debt. (Interest on home interest debt is usually tax-deductible, which isn't the case with 401(k) loan interest, however.) Make no mistake: That 401(k) loan interest comes out of your own coffers, but it's still better than surrendering it altogether to a third party.

5 funds Russ Kinnel identifies five funds he believes offer downside protection:

So, we have turbulence, high U.S. equity prices, and low bond yields everywhere. Sounds like a decent time to play defense. With that in mind, I've pulled five funds that play very different kinds of defense.

10 purchases Eric Compton, from our latest Ultimate Stock-Pickers update:

While we'd seen an increase in buying and selling activity by our top managers during the first quarter, with the sell-off in the market creating opportunities for our Ultimate Stock-Pickers, it looks like the buying activity during the second quarter was much lower than we've seen in previous periods.

39 cameos A compilation of every Alfred Hitchcock appearance in his own films.

65+ Also from Christine Benz, quality funds that qualify as senior citizens:

… despite the industry's weak overall record for launches, some funds have had serious staying power. Not only have they stood the test of time, but they're still worth owning today. To help shine a light on these oldies but goodies, I used Morningstar's Premium Fund Screener to identify medalist funds--those that our manager research analysts bless with a strong endorsement--that had inception dates of 1950 or before.

2008 How the effects of 2008 are still felt by pension plans.

2034 That's the year through which Social Security's trust funds will have solvency. Karen Wallace looks at what younger investors should expect:

Morningstar columnist Mark Miller believes that it's unlikely that "nothing will change," however. He and others believe there are plenty of levers available to Congress; rather than cut benefits radically, Congress is more likely to impose some sort of means-testing on benefits, adjust the amount of income that's subject to Social Security, or increase full retirement ages.

Most Popular Articles, Videos, and Securities

Most Popular Articles

• Most Investors Probably Won't Outperform This Simple Portfolio
• Our Ultimate Stock-Pickers Top 10 New-Money Purchases
• Beware These 6 Traps With Your Dividend Portfolio
• These Funds Are Oldies but Goodies
• Where's the Best Place to Park Your Cash?

Most Popular Videos

• Benz: Top Tips for RMD Season
• New Data Points to Labor Shortages
• Weekly Wrap: Macy's, Wal-Mart, Disney Look to the Future
• Add Diversification With These 3 Small-Value Funds
• Slowing Profits Not Great News for Stock Market

Most Requested Stock Quotes Apple IBM Berkshire Hathaway Gilead Sciences Disney

Gilead Sciences

Williams-Sonoma

Disney

Bristol-Myers Squibb

Valeant Pharmaceuticals

Most Requested Fund Quotes Vanguard Dividend Growth Fidelity Contrafund Vanguard Wellesley Income Vanguard Wellington Vanguard 500 Index

Most Requested Fund Analyses

Vanguard Dividend Growth

Oakmark International

Vanguard Equity-Income

American Century Equity Income

Vanguard Wellington

Most Requested ETF Quotes Vanguard Total Stock Market ETF SPDR S&P 500 ETF Vanguard High Dividend Yield ETF Vanguard REIT ETF Vanguard Dividend Appreciation ETF

Most Requested ETF Analyses

Vanguard High Dividend Yield ETF

Vanguard Dividend Appreciation ETF

Vanguard Total Stock Market ETF

SPDR Gold Shares

Schwab US Dividend Equity ETF