The Decision Dividend

Index funds have transformed investing. They lowered costs, improved diversification, and helped investors avoid many of the most common mistakes. For most people, indexing has been a clear upgrade over trying to outsmart the market.

But even indexing is an active decision. The way an index is built, how it handles income and taxes, and how it’s implemented all influence results in ways that don’t show up in expense ratios.

In Episode 25 of Greenstream, we unpack where those decisions live, why they matter, and how investors can keep the intent of indexing while being more thoughtful about execution. You’ll learn about:

00:00 Is Indexing The Best You Can Do? – why “good enough” investing still deserves scrutiny (1)

01:39 The Evolution of Index Funds – from benchmarking tool to dominant investment strategy (2)

05:46 The Goal of An Index Fund – minimizing tracking error, not beating the market

10:34 Why Indexing Is Still Active – index selection as a subjective decision (3)

13:40 Structural Decisions in Index Construction – S&P 500, QQQ, and what “market” really means (3-6)

16:28 International & Small-Cap Indexes – why similar labels produce very different outcomes (3, 7-8)

21:14 Index Design vs Investor Needs – tax-efficiency and whether an index is built for you (9)

25:50 The Reconstitution Effect – price impact when everyone trades at once (10-12)

34:37 Style Drift Inside Index Funds – how portfolios change between rebalances

37:52 Can Indexing Be Improved? – innovation within rules-based investing

40:02 What Investors Can Do – when indexing is the best option and how to implement it better

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Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

Sources

1 – Kissinger: A Biography (Isaacson, 2005)

2 – Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever (Wigglesworth, 2021)

3 – Time period: 2021 to 2024. US Index comparisons include average annual returns for  CRSP US Total Stock Market Index, S&P Total Market Index, Dow Jones US Broad Stock Market Index, and Russell 3000 Index. Developed ex US index comparisons include average annual returns for  FTSE Developed All Cap ex US Index, MSCI EAFE IMI Index (Net), and S&P Developed ex US BMI Index.. Emerging markets index comparisons include average annual returns for S&P Emerging BMI Index (gross div.), MSCI Emerging Markets IMI Index (gross div.), and FTSE Emerging All Cap Total Return Index.

4 – Big Changes For Invesco QQQ: What Investors Should Know (Morningstar, 2025)

5 – NASDAQ-100 Index Methodology

6 – S&P 500 Index Methodology

7 – Opinion: The Hidden Costs of Indexing Are Hurting Institutions’ Returns (Dimensional via Institutional Investor, 2025)

8 – When Tracking Error is a Fix, Not An Error (Dimensional, 2022)

9 - Keeping More of What You Earn: Tax Efficiency of Dimensional Equity Solutions (Dimensional, 2025)

10 - Measuring the Costs of Index Reconstitution: A 10-Year Perspective (Dimensional, 2024)

11 - Tesla’s Charge Reveals Weak Points of Indexing (Dimensional, 2021)

12 - Marlena Lee Discusses Shortcomings of Indexing on “Jill on Money” Podcast (via Dimensional, 2024)

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

Even after a win, the best coaches go back to the tape. 2025 was a strong year for markets. But like a disciplined coach after a big win, the most valuable work happens in the film review. In Episode 24 of Greenstream, we look back on the year not to celebrate outcomes, but to pressure-test decisions. From tariff-driven volatility to the return of cash as a real option, this episode focuses on the habits that matter when markets don’t cooperate. You’ll learn about:

00:00 Why Greenstream Exists – better decisions over better predictions

04:36 How We’re Improving the Podcast (1-4) – lessons from past episodes

07:15 Tariffs as a Stress Test (5-7) – what to do during and after volatility

17:07 International Stocks (8-9) – and the limits of forecasting

20:48 Cash is a Decision Again – after yields, taxes, and inflation

28:14 Finding the Middle Ground (10-11) – discipline and diversification

34:31 The New Tax Law (12-13) – more certainty and more complexity

41:02 The Impact of Greenstream (14) – divorcing decisions vs outcomes

Follow on Apple Podcasts: https://podcasts.apple.com/us/podcast/greenstream/id1795467982

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Subscribe for Email Updates: https://greenspringadvisors.com/greenstream-podcast

Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

Sources

1 Patrick McQuown on Innovation and Exiting Your Business | GS #4

2 GenAI's Impact on Productivity and Profits: With Steve Moritz | GS #14

3 EY’s Lindsay Jordan & Robyn Bew on Why Every Organization Needs a Board (and How to Join One) | GS #18

4 The Business of Baseball with Orioles President Catie Griggs | GS #23

5 Investing through Tariff’s Webinar w/ Economist Apollo Lupescu

6 Is This Time Different – Tariffs | GS #6

7 How Often Should You Rebalance Your Portfolio | GS #22

8 Investment Risk Explained: How Much Diversification Do You Need? | GS #15

9 Is There Still a Case for International Investing? | GS #21

10 Investor Risk: Behavioral Biases That Can Cost Investors Returns | GS #16

11 How To Build The Perfect Portfolio For You | GS #20

12 The Goal of Tax Planning is to Minimize Lifetime Taxes | GS #19

13 Uncovering Opportunities in the New Tax Law "One Big Beautiful Bill Act" Webinar

14 The Truth About Annuities: Why Their Bad Rap Is (Mostly) Deserved | GS #7

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

What does it take to run a modern Major League Baseball franchise? In Episode 23 of Greenstream, we talk with Catie Griggs, the Baltimore Orioles’ President of Business Operations, about how the O’s are working to build a championship-caliber fan experience on the field and in the stands. You’ll learn about:

Follow Catie Griggs: https://www.linkedin.com/in/catie-griggs/

Subscribe for Email Updates: https://greenspringadvisors.com/greenstream-podcast

Follow on Apple Podcasts: https://podcasts.apple.com/us/podcast/greenstream/id1795467982

Follow on Spotify: https://open.spotify.com/show/26NYX6WD7godcJAYVE0Yk8?si=Qxj-H7HiRdGmbNlW8uuV9g

Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

Rebalancing may help keep your portfolio aligned with your goals, but how often should you actually do it? In Episode 22 of Greenstream, we break down the research behind rebalancing, why drift matters, and how to use cashflows to rebalance with the least friction and cost. You’ll learn about the:

Subscribe for Email Updates: https://greenspringadvisors.com/greenstream-podcast

Follow on Apple Podcasts: https://podcasts.apple.com/us/podcast/greenstream/id1795467982

Follow on Spotify: https://open.spotify.com/show/26NYX6WD7godcJAYVE0Yk8?si=Qxj-H7HiRdGmbNlW8uuV9g

Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

Sources

1 Opportunistic Rebalancing: A New Paradigm for Wealth Managers (Daryanani, 2008)

2 Rebalancing and Returns (Dimensional, 2008)

3 Hong, Xing, Portfolio Rebalancing: Tradeoffs and Decisions (2021): https://ssrn.com/abstract=3858951

4 Are Advisors Worth Their Fee | Greenstream 13 (2025)

Greenspring Advisors is a registered investment adviser with the SEC and does not provide tax, legal or accounting advice. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

After 15 years of U.S. outperformance, many investors are wondering whether global diversification is still worth it. In Episode 21 of Greenstream, we look past recent returns and dig into the long-run evidence of global stock market returns. You’ll learn about:

Subscribe for Email Updates: https://greenspringadvisors.com/greenstream-podcast

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Follow on Spotify: https://open.spotify.com/show/26NYX6WD7godcJAYVE0Yk8?si=Qxj-H7HiRdGmbNlW8uuV9g

Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

Sources

1Chambers, David and Dimson, Elroy and Ilmanen, Antti S. and Rintamäki, Paul, Long-Run Asset Returns. Available at SSRN: https://ssrn.com/abstract=5022480

2UBS Investment Returns Yearbook 2025: https://www.ubs.com/global/en/investment-bank/insights-and-data/2025/global-investment-returns-yearbook-2025.html

3International Diversification—Still Not Crazy after All These Years. AQR, 2023: https://www.aqr.com/Insights/Research/Journal-Article/International-Diversification-Still-Not-Crazy-after-All-These-Years

4Japan in the News, But It’s Nothing New. Dimensional, 2024: https://www.dimensional.com/us-en/insights/japan-in-the-news-but-its-nothing-new

5A Tale of Two Decades: Lessons for Long-Term Investors. Dimensional, 2020: https://www.dimensional.com/us-en/insights/a-tale-of-two-decades

6Has Australia Really Had a 28-Year Expansion? Federal Reserve Bank of St. Louis, 2019: https://www.stlouisfed.org/on-the-economy/2019/september/australia-28-year-expansion

7Investor Risk: Behavioral Biases That Cost Investors Returns. Greenspring Advisors, 2025: https://youtu.be/jMxlCOdjkqg?si=CzWk2vQ6QEJUyW3P

8Global Diversification Still Requires International Securities. Dimensional, 2024: https://www.dimensional.com/us-en/insights/global-diversification-still-requires-international-securities

Greenspring Advisors is a registered investment adviser with the SEC and does not provide tax, legal or accounting advice. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

It’s one of the most important decisions in personal finance. Research has shown that asset allocation, not the stocks you pick, explains 90% of returns (see sources below). That’s why getting your mix of stocks to bonds right matters most. In Episode 20 of Greenstream, we explain why there is no agreement on the single, optimal portfolio, but how we can find the best portfolio for you.

You’ll learn about:

Subscribe for Email Updates: https://greenspringadvisors.com/greenstream-podcast

Follow on Apple Podcasts: https://podcasts.apple.com/us/podcast/greenstream/id1795467982

Follow on Spotify: https://open.spotify.com/show/26NYX6WD7godcJAYVE0Yk8?si=Qxj-H7HiRdGmbNlW8uuV9g

Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

Sources

1 Brinson, G. P., Hood, L. R., & Beebower, G. L. (1986). Determinants of Portfolio Performance. Financial Analysts Journal, 42(4), 39–44. https://doi.org/10.2469/faj.v42.n4.39

2 Ibbotson, Roger G. and Kaplan, Paul D., Does Asset Allocation Policy Explain 40, 90, 100 Percent Of Performance?. Available at SSRN: https://ssrn.com/abstract=279096

3 https://youtu.be/CFbvuB4o1bk?si=HjtiukEtteLJuNAQ

4 Gennaioli, Nicola and Shleifer, Andrei and Vishny, Robert W., Money Doctors (June 11, 2012). Chicago Booth Research Paper No. 12-39, Fama-Miller Working Paper, Available at SSRN: https://ssrn.com/abstract=2133429 or http://dx.doi.org/10.2139/ssrn.2133429

5 https://youtu.be/y_PX-HyRW-Q?si=ISVpYmGFudUcYr9O

Greenspring Advisors is a registered investment adviser with the SEC and does not provide tax, legal or accounting advice. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

Taxes are one of your largest lifetime expenses, but most people think about them after it’s too late to make a difference. In Episode 19 of Greenstream, we break down the difference between tax preparation (filling out your tax return) and tax planning (proactively shaping your outcomes). You’ll learn about:

Uncovering Opportunities in the New Tax Law "One Big Beautiful Bill Act" Webinar

Greenspring Advisors is a registered investment adviser with the SEC and does not provide tax, legal or accounting advice. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

Board service is one of the most impactful ways to shape organizations, give back, and expand your influence. In this episode, Lindsay Jordan and Robyn Bew, board governance experts from EY (sharing personal perspectives), unpack what boards do, why they matter for every organization, and how you can position yourself to join one.

Sources

EY Center for Board Matters – Our latest thinking | EY - US https://www.ey.com/en_us/board-matters

Connect with Lindsay Jordan on LinkedIn https://www.linkedin.com/in/lindsaygjordan/

Connect with Robyn Bew on LinkedIn https://www.linkedin.com/in/robyn-bew/

EY CBM Board Effectiveness framework https://www.ey.com/en_us/board-matters/how-to-achieve-enduring-board-effectiveness

Americas board priorities 2025 | EY - US https://www.ey.com/en_us/board-matters/americas-board-priorities-2025

EY CBM Board Readiness Resource Center https://cs.ey.com/2025/03/11922/

Subscribe for Email Updates: https://greenspringadvisors.com/greenstream-podcast

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Follow on Spotify: https://open.spotify.com/show/26NYX6WD7godcJAYVE0Yk8?si=Qxj-H7HiRdGmbNlW8uuV9g

Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

Greenspring Advisors is a registered investment adviser with the SEC and does not provide tax, legal or accounting advice. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

Are you investing or are you gambling? In episode 17 of Greenstream, we unpack evidence from casinos, sportsbooks, and academic finance to show how the odds work against gamblers but for investors. You’ll learn about:

Subscribe now so you don’t miss what’s coming next: an inside look at the importance of Boards of Directors for organizations of all sizes and how to find opportunities to join one.

Sources:

1 Thaler, Richard H., and William T. Ziemba. 1988. "Anomalies: Parimutuel Betting Markets: Racetracks and Lotteries." Journal of Economic Perspectives: https://www.aeaweb.org/articles?id=10.1257/jep.2.2.161

2 Sauer, Raymond. (1998). The Economics of Wagering Markets. Journal of Economic Literature. 36. 2021-2064. https://www.researchgate.net/publication/4732178_The_Economics_of_Wagering_Markets

3 https://www.bbc.com/future/article/20160721-the-buzz-that-keeps-people-gambling

4 https://responsiblegambling.org/for-the-public/about-gambling/the-science-behind-gambling/

5 Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: https://ssrn.com/abstract=3423101 

6 Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance, The Cross-Section of Speculator Skill: Evidence from Day Trading (December 31, 2012). Available at SSRN: https://ssrn.com/abstract=529063

7 Ritter, Jay R., The Long-Run Performance of Initial Public Offerings (1991). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1505889

8 https://site.warrington.ufl.edu/ritter/ipo-data/

9 Asness, Cliff S. and Frazzini, Andrea and Israel, Ronen and Moskowitz, Tobias J. and Moskowitz, Tobias J. and Pedersen, Lasse Heje, Size Matters, If You Control Your Junk (January 22, 2015). Fama-Miller Working Paper: https://ssrn.com/abstract=2553889

10 Rizova, Savina and Saito, Namiko, Investment and Expected Stock Returns (July 8, 2020). Available at SSRN: https://ssrn.com/abstract=3646575

11 American Dream: Is Your House Your Greatest Investment? | Greenstream #8 https://www.youtube.com/watch?v=z-_Eg-hHaPA&t=2s

12 Real Estate: Expected Returns and Expected Headaches | Greenstream #9 https://youtu.be/Hhscc3TLEEY?si=VrRQwYSzFTAGMVTa

13 Bessembinder, Hendrik (Hank), Do Stocks Outperform Treasury Bills? (May 28, 2018). https://ssrn.com/abstract=2900447

Greenspring Advisors is a registered investment adviser with the SEC and does not provide tax, legal or accounting advice. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

Investment returns are expected, not promised. To capture them, investors should both intelligently take risks and stick around for the return. In episode 16 of Greenstream, we break down the psychological and behavioral biases that can hold us back. Investors should view these as penalties or unforced errors that make winning your game harder.

You'll learn:

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Follow on Spotify: https://open.spotify.com/show/26NYX6WD7godcJAYVE0Yk8?si=Qxj-H7HiRdGmbNlW8uuV9g

Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

Sources:

1 Are Financial Advisors Worth Their Fee? | Greenstream #13 https://youtu.be/Is7N5M4e4Ck

2 Investment Risk Explained: How Much Diversification Do You Need? | Greenstream #15 https://youtu.be/yEqRrXDAe7A

3 Barberis, Nicholas and Barberis, Nicholas and Thaler, Richard H., A Survey of Behavioral Finance (2002). https://ssrn.com/abstract=327880

4 Barber, Brad M. and Odean, Terrance, Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment (1998). https://ssrn.com/abstract=139415

5 Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. https://ssrn.com/abstract=219228

6 Odean, Terrance, Do Investors Trade Too Much? (1998). https://ssrn.com/abstract=94143

7 Collins, Jim, The Stockdale Paradox. https://www.jimcollins.com/concepts/Stockdale-Concept.html 

Greenspring Advisors is a registered investment adviser with the SEC and does not provide tax, legal or accounting advice. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.