The following is in response to Mitchell Eichen and John Longo’s article, The Practical Application of Behavioral Finance, which appeared last week:

Dear Editor,

The first three quarters of this article was an introduction to every basic finance book ever written. The last bit of it was a commercial for the authors’ services and a link to their website for more. I was disappointed to see that you allow these marketing articles to be passed off as investment industry news.

I like your emails and your articles and want to know that if I’m going to spend time opening and reading them, I’m not going to feel cheated reading three pages of behavioral finance 101 and one page of “here’s our secret sauce – click here to learn more.”

Mike Guirguis, CFA, CAIA


The following is in response to Geoff Considine's article, ‘The Greatest Anomaly in Finance:’ Understanding and Exploiting the Outperformance of Low-Beta Stocks, which appeared on February 14, 2012:

Dear Editor,

I read your article from Feb 2012 and I am quite interested in learning more regarding low volatility/beta equity investing. I could not find several of the ETFs mentioned in the article that follow the Russell 1000 and 2000 indices. Have those ETFs been dissolved? SPLV looks to be doing well as far as I can tell. But I was looking at all potential low-vol/beta ETFs, and I could not find very many.


Glen Poklikuha

Geoff Considine replies:

A number of the low-vol funds have been closed because they were not growing enough assets. There were no problems that I am aware of, but these funds came along when the market started to take off and high beta has been rewarded in recent years. For the low-vol crowd, SPLV has captured the lion's share of the assets and it was apparently a factor in Russell's decision to close its funds.