Answer by Money Ann for At what point do index funds become unreliable?
All humans are inherently active investors. You make an active decision when:Picking an ETF based on its objectives (note - no ETF is truly passive: All remove insolvent companies.)Deciding to invest...
View ArticleAnswer by Brythan for At what point do index funds become unreliable?
Private investors as mutual funds are a minority of the market. Institutional investors make up a substantial portion of the long term holdings. These include pension funds, insurance companies, and...
View ArticleAnswer by farnsy for At what point do index funds become unreliable?
A great deal of analysis on this question relies on misunderstandings of the market or noticing trends that happened at the same time but were not caused by each other. Without knowing your view, I'll...
View ArticleAnswer by teldon james turner for At what point do index funds become...
As more actively managed funds are driven out of the market, the pricing of individual stocks should become less rational. I.e. more stocks will become underpriced relative to their peers. As stock...
View ArticleAnswer by Lan for At what point do index funds become unreliable?
private investors that don't have the time or expertise for active investment.This may be known as every private investor. An index fund ensures average returns. The bulk of active trading is done by...
View ArticleAnswer by JimmyJames for At what point do index funds become unreliable?
The argument you are making here is similar to the problem I have with the stronger forms of the efficient market hypothesis. That is if the market already has incorporated all of the information about...
View ArticleAt what point do index funds become unreliable?
Passively investing in exchange-traded funds that track some broad index is often recommended for private investors that don't have the time or expertise for active investment. In particular, index...
View Article
