MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

Markets »

133.48MDow Volume:
Avg Vol: 113.01M
Unchanged
201
Decliners
1922
Advancers
4480
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,351 +293 1.82%
Nasdaq
/quotes/zigman/12633936/realtime 4,750 +114 2.46%
S&P 500
/quotes/zigman/3870025/realtime 1,949 +35 1.83%
GlobalDow
/quotes/zigman/629063/realtime 2,313 +18 0.78%
Gold
/quotes/zigman/662444/delayed 1,133 -1 0.04%
Oil
/quotes/zigman/2331095/delayed 46.26 +0.01 0.02%
FTSE 100
/quotes/zigman/3173262/delayed 6,083 +25 0.41%
DAX
/quotes/zigman/2380246/delayed 10,048 +32 0.32%
CAC 40
/quotes/zigman/3173214/delayed 4,555 +14 0.30%
FTSE MIB
/quotes/zigman/1482176/delayed 21,612 +161 0.75%
IBEX 35
/quotes/zigman/2759620/delayed 9,938 -55 0.55%
Stoxx 600
/quotes/zigman/2380150/delayed 354 +1 0.27%
Asia Dow
/quotes/zigman/6959860/realtime 2,703 -14 0.53%
Nikkei 225
/quotes/zigman/5986735/delayed 18,095 -70 0.39%
Hang Seng
/quotes/zigman/2622475/delayed 20,935 -250 1.18%
Shanghai
/quotes/zigman/1859015/delayed 3,160 -6 0.20%
Sensex
/quotes/zigman/1652085/delayed 25,454 -243 0.95%
Singapore
/quotes/zigman/1709939/delayed 2,878 -5 0.16%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.06%
Yen
/quotes/zigman/16008150/realtime/sampled 120.53 +0.20 0.17%
Pound
/quotes/zigman/16008140/realtime/sampled 1.53 +0.00 0.06%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 +0.00 0.18%
DXY Index
/quotes/zigman/1652083/delayed 96.00 +0.02 0.02%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.58 +0.02 0.03%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.03 1.35%
German 10y
/quotes/zigman/15866409/realtime 0.78 -0.02 1.96%
Italy 10yr
/quotes/zigman/15866497/realtime 2.00 0.00 0.02%
Spain 10yr
/quotes/zigman/15866444/realtime 2.15 +0.01 0.45%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.82 -0.01 0.55%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 +0.03 8.56%
Crude Oil
/quotes/zigman/2331095/delayed 46 +0 0.02%
Gold
/quotes/zigman/662444/delayed 1,133 -1 0.04%
Corn
/quotes/zigman/7599553/delayed 367 -2 0.54%
DJIA F
/quotes/zigman/38649152/delayed 16,370 +40 0.24%
S&P F
/quotes/zigman/30356461/delayed 1,951 +4 0.21%
Silver
/quotes/zigman/3134148/delayed 15 0 0.01%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.89 2.66 3.05%
AAPL /quotes/zigman/68270/composite 112.34 4.62 4.29%
GOOG /quotes/zigman/30194416/composite 614.34 16.55 2.77%
BAC /quotes/zigman/190927/composite 15.85 0.32 2.06%
C /quotes/zigman/5065548/composite 51.75 0.81 1.59%
F /quotes/zigman/264304/composite 13.87 0.15 1.09%
T /quotes/zigman/398198/composite 32.82 0.50 1.55%
BP /quotes/zigman/247026/composite 32.20 0.06 0.19%
GE /quotes/zigman/227468/composite 24.57 0.69 2.89%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/53883068/composite PLNT+1.43%
  • /quotes/zigman/87598/composite NFLX-0.33%
  • /quotes/zigman/133914/composite LCI+4.63%
  • /quotes/zigman/10944615/composite FIVE+1.44%
  • /quotes/zigman/23556538/composite TWTR+2.92%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
  • Premium newsletters by our market experts
  • Games, such as Virtual Stock Exchange and Beat the Darts
  • Free WSJ.com registration

Email address

Password

Forgot password?

SmartMoney Blogs

Real-Time Advice
Our real-time advice on how market shifts and news impact you and your money

Study: Funds’ Home-State Bias Costs Investors $31 Billion

One more reason your worry about your mutual fund: The manager is too much of a homebody.

Each year Main Street investors shell out billions in management fees, hoping professional investors are scouring the markets for bargains they could never find themselves. Some managers do just that — flying all over the world meeting with executives of exotic companies. Others use complex computer models to take the human bias out of picking stocks.

But new research suggests many favor names simply because they’re familiar from back home. The study, from Indiana University’s Kelley School of Business, found portfolio managers overweight companies based in the state where they grew up by 12% on average. Given the nearly $12 trillion size of the mutual fund industry — about a third of which is invested in domestic active stock funds — researchers estimated hometown bias accounted for annual investments totaling $31 billion each year. (A spokeswoman for the Investment Company Institute, an industry trade group, declined to comment).

Among the detailed findings: Young managers appeared to show greater bias, suggesting the quirk may be tied to experience. The effect was also more pronounced in small-cap stocks, which tend to be harder to research. Fund managers tend to favor stocks near their fund’s location, an effect the researchers say has been documented before.

Should investors be worried? The authors concluded that home-state picks didn’t necessarily underperform other segments of managers’ portfolios – but they didn’t outperform either. Still, the habit does pose extra risks because companies located in the same state tend to be affected by the same business conditions. Your “portfolio may be too concentrated in one area of the economy,” says co-auther Scott Yonker.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (3 of 3)

View all Comments »
    • as Charles explained I am startled that some people able to make $8288 in 1 month on the internet. have you read this link (Click on menu Home more information) http://goo.gl/2bQq5

    • Maybe local (home state) companies provide an easier and less costly opportunity for fund managers to meet with and get to know company management (without traveling to the ends of the earth). This might allow for a better decision on the part of the fund manager.

About Real-Time Advice

  • How breaking news — in the markets, Washington, and around the world — affects you and your money. Have a question about how current events may change your financial future? Email us at ask@smartmoney.com.

MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

Markets »

133.48MDow Volume:
Avg Vol: 113.01M
Unchanged
201
Decliners
1922
Advancers
4480
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,351 +293 1.82%
Nasdaq
/quotes/zigman/12633936/realtime 4,750 +114 2.46%
S&P 500
/quotes/zigman/3870025/realtime 1,949 +35 1.83%
GlobalDow
/quotes/zigman/629063/realtime 2,313 +18 0.78%
Gold
/quotes/zigman/662444/delayed 1,133 -1 0.04%
Oil
/quotes/zigman/2331095/delayed 46.26 +0.01 0.02%
FTSE 100
/quotes/zigman/3173262/delayed 6,083 +25 0.41%
DAX
/quotes/zigman/2380246/delayed 10,048 +32 0.32%
CAC 40
/quotes/zigman/3173214/delayed 4,555 +14 0.30%
FTSE MIB
/quotes/zigman/1482176/delayed 21,612 +161 0.75%
IBEX 35
/quotes/zigman/2759620/delayed 9,938 -55 0.55%
Stoxx 600
/quotes/zigman/2380150/delayed 354 +1 0.27%
Asia Dow
/quotes/zigman/6959860/realtime 2,703 -14 0.53%
Nikkei 225
/quotes/zigman/5986735/delayed 18,095 -70 0.39%
Hang Seng
/quotes/zigman/2622475/delayed 20,935 -250 1.18%
Shanghai
/quotes/zigman/1859015/delayed 3,160 -6 0.20%
Sensex
/quotes/zigman/1652085/delayed 25,454 -243 0.95%
Singapore
/quotes/zigman/1709939/delayed 2,878 -5 0.16%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.06%
Yen
/quotes/zigman/16008150/realtime/sampled 120.53 +0.20 0.17%
Pound
/quotes/zigman/16008140/realtime/sampled 1.53 +0.00 0.06%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 +0.00 0.18%
DXY Index
/quotes/zigman/1652083/delayed 96.00 +0.02 0.02%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.58 +0.02 0.03%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.03 1.35%
German 10y
/quotes/zigman/15866409/realtime 0.78 -0.02 1.96%
Italy 10yr
/quotes/zigman/15866497/realtime 2.00 0.00 0.02%
Spain 10yr
/quotes/zigman/15866444/realtime 2.15 +0.01 0.45%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.82 -0.01 0.55%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 +0.03 8.56%
Crude Oil
/quotes/zigman/2331095/delayed 46 +0 0.02%
Gold
/quotes/zigman/662444/delayed 1,133 -1 0.04%
Corn
/quotes/zigman/7599553/delayed 367 -2 0.54%
DJIA F
/quotes/zigman/38649152/delayed 16,370 +40 0.24%
S&P F
/quotes/zigman/30356461/delayed 1,951 +4 0.20%
Silver
/quotes/zigman/3134148/delayed 15 0 0.01%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.89 2.66 3.05%
AAPL /quotes/zigman/68270/composite 112.34 4.62 4.29%
GOOG /quotes/zigman/30194416/composite 614.34 16.55 2.77%
BAC /quotes/zigman/190927/composite 15.85 0.32 2.06%
C /quotes/zigman/5065548/composite 51.75 0.81 1.59%
F /quotes/zigman/264304/composite 13.87 0.15 1.09%
T /quotes/zigman/398198/composite 32.82 0.50 1.55%
BP /quotes/zigman/247026/composite 32.20 0.06 0.19%
GE /quotes/zigman/227468/composite 24.57 0.69 2.89%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/53883068/composite PLNT+1.43%
  • /quotes/zigman/87598/composite NFLX-0.33%
  • /quotes/zigman/133914/composite LCI+4.63%
  • /quotes/zigman/10944615/composite FIVE+1.44%
  • /quotes/zigman/23556538/composite TWTR+2.92%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
  • Premium newsletters by our market experts
  • Games, such as Virtual Stock Exchange and Beat the Darts
  • Free WSJ.com registration

Email address

Password

Forgot password?