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> That’s largely because index funds trade so much less often than active managers. On a typical day, only 5% to 10% of total trading volume comes from index fu
by tedmiston 10y ago
> That’s largely because index funds trade so much less often than active managers. On a typical day, only 5% to 10% of total trading volume comes from index funds, says a Vanguard spokesman.
I'm surprised the author omitted it, but can anyone comment whether this is different for robo investors (Wealthfront, Betterment) vs a traditional index fund like Vanguard?
- atestu 10y agoRobo-investors offer you a portfolio of funds (could be a mix of mutual and index) run by companies like Vanguard.
- Spooky23 10y agoRobo advisors are like meta index funds. They give you the canned advice that your local Financial advisor gives you, minus the quarterly meeting and phone therapy when the market goes down, and plus some automated intelligent handling of capital gains to reduce your tax exposure.