Index Fund Advisors

Last updated
Index Fund Advisors
Company type Private
Industry Financial services
FoundedMarch 5, 1999;25 years ago (March 5, 1999)
Headquarters
Irvine, California
,
United States
Key people
Mark Hebner
Products Registered Investment Advisor
AUM $4.4 billion (2024)
Website www.ifa.com

Index Fund Advisors (IFA) is an American registered investment advisor (RIA) headquartered in Irvine, California, with representatives in several locations across the United States. IFA pioneered the idea of the Robo-Advisor when it first published their website on November 9, 1999.

IFA offers high-net-worth individuals, 401k plans, 403b plans, foundations, and endowments of an expanding range of advisory services that are consistent with IFA's investment strategy of passive management. Heavily influenced by the works of Nobel Laureates Eugene Fama, Harry Markowitz, Paul Samuelson, William F. Sharpe, Merton Miller, Daniel Kahneman and Friedrich von Hayek, IFA advises clients to invest in low-cost index mutual funds, such as those provided by Dimensional Fund Advisors, Vanguard or Blackrock's iShares. Additionally, IFA offers advice on faith-based and sustainable investments, through its IFAsustainable.com and InvestingforCatholics.com sites. [1]

History

The company was founded on March 5, 1999, by Mark T. Hebner, [2] former president of nuclear pharmacy company Syncor International, with the goal of providing online automated investment adviser services, with a personal touch as needed, while also providing educational material regarding investing to the general public through the website IFA.com. [3] [4]

IFA pioneered the idea of the Robo-Advisor when it first published their website on November 9, 1999, as indexfundsadvisors.com, then IFA.tv and finally as IFA.com.[ citation needed ] Mark Hebner pioneered the business model of a low-cost online Registered Investment Adviser which would provide an online algorithm-based risk capacity survey designed to match individual investors with one of several index portfolios. These portfolios have always been implemented exclusively with index funds. The process of becoming an IFA client did not required face to face meetings and there was minimal human intervention. IFA was among the first RIAs to offer an online live advisor camera (streaming video and NetMeeting) and live chat. Since 1999, IFA clients have been offered portfolio rebalancing, tax loss harvesting, tax-management, asset location, extensive online education and historical index and index portfolio risk and return data. [5]

In 2012, IFA built its own in-house TV studio and produced videos that were published on iTunes, YouTube, Roku, and IFA.tv (352 videos as of August 2016). One of the world's largest private collections of financial books can be found at IFA, with about 2,494 books dating back to 1648. The books are catalogued and displayed on IFA.com.

Mark Hebner is also the author of Index Funds: The 12-Step Recovery Program for Active Investors, a book on behavioral finance, the failure of active management and the advantages of passive investing. The book was first published in 2005 and its latest update was published in 2015. [6] Together these various media endeavors advance Hebner's mission to get investors all over the world to stop actively investing their investment portfolios.

IFA's investing philosophy is based on academic and empirical research, including the efficient-market hypothesis, multi-factor asset pricing models, such as the Fama-French Three-Factor Model and more generally modern portfolio theory. IFA rejects the investment strategies generally known as active management. These strategies include stock picking, market timing, manager selection and tactical asset allocation.

In 2015, they had annual growths of more than 18% in assets under management reaching $2.71 billion by the end of June. [7] [8] In March of 2015, Wesley Long became executive vice president and director of wealth advisor services at IFA. [9] [10]

In February 2016, IFA opened a new office in Austin, Texas, managed by Derick Kann. [11] [12] [13]

By 2017, IFA reached $3.84 billion in assets under management. According to Forbes, IFA was one of the 100 fastest growing RIA Firms, in 2016. [14]

In August 2023 IFA announced that Mark J. Higgins became the Senior Vice President and Institutional Advisor. [15] As of January 2024, they managed $4.4 billion in assets. [16]

See also

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References

  1. ↑ "The story behind Index Fund Advisors | TEBI". The Evidence-Based Investor. 2020-09-22. Retrieved 2024-04-09.
  2. ↑ "Index Fund Advisors opens new office in Austin". Private Banker International. 2016-02-22. Retrieved 2024-03-18.
  3. ↑ "Index Fund Advisors opens new office in Austin". Private Banker International. 2016-02-22. Retrieved 2024-03-18.
  4. ↑ "Index Fund Advisors Review | SmartAsset.com". SmartAsset. 2023-07-20. Retrieved 2024-03-18.
  5. ↑ "Index Fund Advisors Review | SmartAsset.com". SmartAsset. 2023-07-20. Retrieved 2024-04-09.
  6. ↑ Hebner, Mark T.; Markowitz, Harry M. (2012-03-15). Index Funds: The 12-Step Recovery Program for Active Investors. IFA Publishing, Inc. ISBN   978-0-9768023-1-0.
  7. ↑ "Orange County's Index Fund Advisors Ranks 80th on FA Magazine's RIA Rankings and 71st on Forbes Top 100 Wealth Managers". Yahoo Finance. 2015-07-21. Retrieved 2024-05-29.
  8. ↑ "Index Fund Advisors Review | SmartAsset.com". SmartAsset. 2023-07-20. Retrieved 2024-05-29.
  9. ↑ "ON THE MOVE-Ex-Wedbush private client head joins Index Fund Advisors". Reuters. Retrieved 2024-05-29.
  10. ↑ "Advisors on the Move: Morgan Stanley Loses $750M Team". Financial Planning. 2015-04-13. Retrieved 2024-05-29.
  11. ↑ "California RIA Opens Doors In Texas". www.familywealthreport.com. Retrieved 2024-05-31.
  12. ↑ "Index Fund Advisors Expands National Presence With Appointment Of Derick Kann, CFP(R) and Launch of Austin Location". Yahoo Finance. 2016-02-18. Retrieved 2024-05-31.
  13. ↑ Staff, Verdict (2016-02-22). "Index Fund Advisors opens new office in Austin". Private Banker International. Retrieved 2024-05-31.
  14. ↑ Cooling, Julie. "100 Fastest Growing RIA Firms Over Ten Years". Forbes. Retrieved 2017-10-04.
  15. ↑ "Index Fund Advisors (IFA) Hires Former Senior Investment Consultant to Drive Expansion of Institutional Investment Plan Business". www.prnewswire.com. Retrieved 2024-06-05.
  16. ↑ "Index Fund Advisors Review 2024". investor.com. Retrieved 2024-06-05.
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