> But, he adds, that would require indexing to grow immensely from today’s levels. Probably not until passive funds are at least 90% of the market could such chaos arise, he argues.
That's a pretty hypothetical scenario, isn't it? Index funds, ETFs in particular, are a brilliant idea that allows ordinary people to participate in the success of market trailblazers.
If it wasn't for index funds most people wouldn't be able to make reasonable investment decisions because they're not investment bankers who deal with that sort of business on a daily basis. Even investment bankers fail with their investments most of the time. It's usually just the few successful investments or things like arbitrage that balance out the odds.
Ordinary people usually neither have the knowledge nor the resources to do investments this way, so index funds probably are the best option for accumulating wealth over a period of time.
That's a pretty hypothetical scenario, isn't it? Index funds, ETFs in particular, are a brilliant idea that allows ordinary people to participate in the success of market trailblazers.
If it wasn't for index funds most people wouldn't be able to make reasonable investment decisions because they're not investment bankers who deal with that sort of business on a daily basis. Even investment bankers fail with their investments most of the time. It's usually just the few successful investments or things like arbitrage that balance out the odds.
Ordinary people usually neither have the knowledge nor the resources to do investments this way, so index funds probably are the best option for accumulating wealth over a period of time.