Indexing for Tomorrow's Generation - Indexing Direct
After years of monitoring index results and many years of due diligence, Linden Thomas & Company's founder and his team discovered that traditional market-cap index funds had structural deficiencies because of the market-cap requirements and pooled investor ownership. So, Stephen L. Thomas and his team set out to build a more efficient way of investing for affluent clients.
After the team discovered shortfalls of market-cap index funds, they set out to build a more efficient institutional index. This provides clients direct access to owning companies with the highest quality earnings standards and gives investors direct ownership in the equities (which produces transparency and control).
The table below illustrates the pros and cons of market-cap index funds versus Linden Thomas & Company's Earnings-Focused Indexes.
Our research shows, while index funds may benefit small investors who want to be diversified for a small amount of money. A different structure is more beneficial for large investors.