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If...
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- Lemon Slice
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Re: If...
And once index funds demonstrate they can consistently beat active funds what will happen to that sector?
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- Lemon Slice
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Re: If...
But they can’t can they? Index funds can only get market returns less costs/friction losses, which leaves the rest of the market returns (and exactly the same returns) for the active investors (from which, costs/friction losses). So they both get the same returns.
But you can have bad and worse indexes, which I suppose gives some succour to the active investors. And the active investors are funds and individuals; you asked about funds, so I suppose active funds could take from active individual investors, thus out-gunning index funds, but not many seem to.
But you can have bad and worse indexes, which I suppose gives some succour to the active investors. And the active investors are funds and individuals; you asked about funds, so I suppose active funds could take from active individual investors, thus out-gunning index funds, but not many seem to.
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- Lemon Slice
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Re: If...
JohnW wrote:But they can’t can they? Index funds can only get market returns less costs/friction losses, which leaves the rest of the market returns (and exactly the same returns) for the active investors (from which, costs/friction losses). So they both get the same returns.
But they don't do they?
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- Lemon Slice
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Re: If...
JohnW wrote:Yes, I’d say can’t, don’t and shan’t.
Which begs the question of what the market is?
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