Got a great story on an S&P 500 index fund that you won’t believe. Consider a S&P 500 Index Fund with $2B in assets that charges a 60bps management fee and a 3% front-end sales charge. Think this is impossible? Think again…this exists in the real-world!!! The New York Life Mainstay S&P 500 Index Fund is an amazing case study in the power of a motivated distribution channel. Here is the performance since inception relative to SPY from 2/2004 to 3/2015:
The Impossible Sale: An S&P 500 Index Funds at 60bps with a 3% Sales Load
About the Author: Wesley Gray, PhD
After serving as a Captain in the United States Marine Corps, Dr. Gray earned an MBA and a PhD in finance from the University of Chicago where he studied under Nobel Prize Winner Eugene Fama. Next, Wes took an academic job in his wife’s hometown of Philadelphia and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management firm dedicated to an impact mission of empowering investors through education. He is a contributor to multiple industry publications and regularly speaks to professional investor groups across the country. Wes has published multiple academic papers and four books, including Embedded (Naval Institute Press, 2009), Quantitative Value (Wiley, 2012), DIY Financial Advisor (Wiley, 2015), and Quantitative Momentum (Wiley, 2016). Dr. Gray currently resides in the suburbs of Philadelphia with his wife and three children. He recently finished the Leadville 100 ultramarathon race and promises to make better life decisions in the future.