Home>Video>Have Correlations Made Your Holdings One Color?  Have
Correlations Made Your Holdings One Color?  Wed, 7 Mar 2012
Higher correlations paradoxically have caused diversification--
and investors' tools to attain it--to be even more important
than they were before.   Video Transcript  Christine Benz: Hi,
I'm Christine Benz for Morningstar.  Whether the proliferation
of index funds and exchange-traded funds has helped drive
increasing correlations and volatility in the market, has been
the subject of some debate in the investment community during
the past several years.  Joining me to discuss this topic is
James Xiong, a senior research consultant for Morningstar
Investment Management. And Mike Rawson is also here. He is
an ETF analyst for Morningstar.  Gentlemen, thank you both so
much for being here.  Mike Rawson: Thank you.  James Xiong:
Thank you for having me.  Benz: So James, I'd like to start with
you. You co-authored a research paper on the topic where you
looked at the proliferation of index fu