Criticism of index-tracking funds is ill-directed

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
asset_chaos
Posts: 1202
Joined: Tue Feb 27, 2007 6:13 pm
Location: Melbourne

Criticism of index-tracking funds is ill-directed

Post by asset_chaos » Tue Nov 14, 2017 4:48 pm

Article from the Economist rebutting a couple of the standard industry gripes about index funds, https://www.economist.com/news/business ... l-directed.
In any other industry, [money going into index funds] would be universally welcomed as a sign that innovation was delivering cheaper products to the benefit of ordinary citizens. But the rise of index funds has provoked some fierce criticism.
Neither the criticisms nor the rebuttals will be new to readers of this forum, but it's good for ordinary investors to have mainstream news organizations publish pieces reinforcing good investing principals.
Regards, | | Guy

User avatar
JamesSFO
Posts: 2885
Joined: Thu Apr 26, 2012 10:16 pm

Re: Criticism of index-tracking funds is ill-directed

Post by JamesSFO » Tue Nov 14, 2017 5:11 pm

Thanks for sharing!

pkcrafter
Posts: 12115
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: Criticism of index-tracking funds is ill-directed

Post by pkcrafter » Tue Nov 14, 2017 7:25 pm

JamesSFO wrote:
Tue Nov 14, 2017 5:11 pm
Thanks for sharing!
+1

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

User avatar
Sandtrap
Posts: 2400
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳

Re: Criticism of index-tracking funds is ill-directed

Post by Sandtrap » Tue Nov 14, 2017 9:12 pm

Article from the Economist
". . . . passive investors, in the form of mutual funds and exchange-traded funds, own only 12.4% of the American equity market.
Fascinating!
j

Post Reply