https://www.theatlantic.com/magazine/archive/2017/09/are-index-funds-evil/534183/
I thought this was an interesting read and worth sharing with the WCI community. My initial takeaways from the article are:
1) Index funds may or may not be evil - the academics are still sorting that out.
2) Anything in life has winners and losers; the article even states that the clear winners in the index fund revolution are ordinary investors, the clear losers are active fund managers and hedge funds, and the possible losers (under fierce debate in the academic world) are consumers.
3) If they are evil, it's not the investor's fault. The deleterious effects of index funds are its concentration of money into the hands of just a few fund managers.
What do you think?
-WSP
I thought this was an interesting read and worth sharing with the WCI community. My initial takeaways from the article are:
1) Index funds may or may not be evil - the academics are still sorting that out.
2) Anything in life has winners and losers; the article even states that the clear winners in the index fund revolution are ordinary investors, the clear losers are active fund managers and hedge funds, and the possible losers (under fierce debate in the academic world) are consumers.
3) If they are evil, it's not the investor's fault. The deleterious effects of index funds are its concentration of money into the hands of just a few fund managers.
What do you think?
-WSP
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