For Index Fund Advisors, 2024 was a year full of highlights and events. From celebrating our 25th Anniversary of helping friends and families reach their financial goals, the 10th edition of Index Funds: The 12-Step Recovery Program for Active Investors, the updated 2024 version of Index Funds: The Movie, the updated IFA App, DOW 100,000 petition, to a new podcast and documentary series. Over this article, we will review some of last year's highlights as we begin our 26th year in 2025.

 

25th Anniversary Celebration

March 5th, 2024, marked 25 years in business for Index Fund Advisors. To be able to celebrate 25 years in business is truly a remarkable feat. To put things into perspective around 15% of small businesses in the U.S. have been operational for 25 years or more*. In fact, 50% fail within the first 5 years**. We could not have done so without all of you. To our clients, team members, friends, and family we thank you for helping us reach this monumental milestone.

Financial Journalist, Robin Powell, sits down with IFA's Founder and CEO, Mark Hebner, to reminisce about the early days of IFA, and why Mark decided to start IFA.

 

10th Edition of Index Funds: The 12-Step Recovery Program for Active Investors plus awards

This year marked the 20th Anniversary of the release of the book Index Funds: The 12 Step Recovery Program for Active Investors as well as the release of the 10th edition of the book. Winner of 6 book awards, and praised by the likes of Jack Bogle, Harry Markowitz, and Paul Samuelson in earlier versions. The 10th edition of the book includes updated portfolio data, photos, quotes, and a new section that demonstrates probability theory (as applied to investing) using the Galton Board with Pascal's Triangle.

Robin Powell takes us step by step through Mark Hebner's 10th Edition of Index Funds: The 12-Step Recovery Program for Active Investors.

How Mark Hebner's book changed David Jones life.

Available on Amazon.com.

 

2024 Edition of Index Funds: The Movie

Updated with new data through 2024, Index Funds: The Movie continues to expose Wall Street sales pitches and fear tactics that are cleverly designed to make your broker rich, but not you. With almost half a million views this film reveals how the stock market works, and how to build a portfolio of low-cost index funds so you can invest and relax.

View the Documentary Movie

 

New Galton Board with 2 Stock Market Clip-ons

The Galton Board is a 12" by 9" (310mm by 218mm) probability demonstrator, with Pascal's triangle and two Stock Market Clip-ons. It provides a visualization of math in motion and the powers of probabilities and statistics. With the addition of the two Stock Market Clip-ons, the board illustrates the randomness and the probabilities of a 100% stock portfolio and a 50% stock/50% bond portfolio monthly returns.

Available on Amazon.

 

Index Fund Advisors App

The Index Fund Advisors app, including the Galton Board App, now provides actual paths of the monthly returns of 20 index portfolios for the last 300 months (about 25 years) and daily rolling 30-day returns for 20 index portfolios updated every day. For a review of all the features available in the IFA app head over to our article entitled "The IFA App: Portfolio Tools & Original Content at the Palm of Your Hand."

 

IFA Petition DOW 100,000

Earlier this year IFA's founder and CEO Mark Hebner learned that most all Indexes around the world use price only returns, which have dividends subtracted from the index, instead of the total return index, which adds back those dividends. Although IFA Indexes and IFA Index Portfolios are presented as total returns, we have found that investment gains and losses are almost entirely reported in the media as price only returns. Even major index providers such as S&P Global and FTSE/Russell set price only returns as the default measure on key data-generating sites, according to our research.

The distinction for investors, of course, is that price only returns do not include dividends and other distributions. How big of a difference does that make? In the table below, you can see the substantial gap between price returns and total returns in both annualized and cumulative returns since the start of IFA.

Because of the return discrepancy Mark Hebner decided to lead a petition drive to get industry leaders and major media players to stop reporting price only returns as default return. As of this writing 569 people have signed this petition, many of whom are notable in the investment world. If you have not already viewed Mark Hebner's petition page feel free to do so and, if you are so inclined, sign his petition.

 

The Scientific Investor Podcast

The Scientific Investor is a new podcast to help investors achieve better outcomes. Its emphasis is on investing, not speculation, and on data and evidence, not opinions or forecasts.

We are going to be covering a wide range of subjects, including market history, investor behavior, financial wellbeing, and the latest academic research. Each episode will feature a different guest talking about their specific area of expertise.

In the first episode Robin Powell sits down with renowned Wall Street Journal personal finance columnist and author of ten books on investing Jonathan Clements to discuss the following topics:

• What is the best way to invest?
• Why is investor behavior so important?
• How does a financial advisor add value?
• And how can you find a suitable financial advisor?

For episode two Robin Powell sits down with renowned author Daniel Crosby to discuss the following topics:

• Why do people pick an advisor?
• Does human genius add value in money management?
• Making decisions with purpose?

Keep a look out for more episodes to come.

 

The Science of Investing Documentary Series

Another short series we have put together is our Science of Investing Documentary Series. Produced in conjunction with Dimensional Fund Advisors, this series explains what we mean by the science of investing. Rather than attempting to predict market movements, Dimensional relies on rigorous data analysis and academic collaboration to design diversified portfolios focusing on risk factors like size, value, and profitability that have historically driven higher returns. Its scientific methodology rejects speculative stock-picking, emphasizing instead the importance of efficient markets, disciplined strategies, and cost-effective implementation to maximize investor outcomes over the long term.

 

From the start it has been Mark Hebner's goal to replace speculation in the market with education. That is why year after year we continue to produce evidence-based articles and videos to support and educate all willing to listen. For 2024 we have updated and written 98 articles on investing, wealth management, taxes, and retirement to go along with 95 videos on associated topics. Countless hours have gone into providing not only our clients, but thousands of others with evidence-based articles and videos on why we invest in low-cost and tax-efficient passively managed funds. We look forward to continuing to bring you our best evidence-based educational content in 2025.

* A look at small businesses in the U.S., by Rebecca Leppert, Pew Research Center, April 22, 2024 - https://www.pewresearch.org/short-reads/2024/04/22/a-look-at-small-businesses-in-the-us/
** The Percentage of Businesses That Fail (Statistics & Failure Rates), by Luisa Zhou, April 13, 2024 - https://luisazhou.com/blog/businesses-that-fail

---

This is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product or service. There is no guarantee investment strategies will be successful. Investing involves risks, including possible loss of principal.  Quotes and pictures are utilized for illustrative purposes only and should not be construed as an endorsement, recommendation, or guarangee of any particular financial product, service, or advisor. For more information about Index Fund Advisors, Inc, please review our brochure at https://www.adviserinfo.sec.gov/ or visit www.ifa.com.