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You also have the situation that index funds must buy or must sell a stock if it enters or leaves an index. This creates an opportunity for active traders.
by awjr 10y ago
You also have the situation that index funds must buy or must sell a stock if it enters or leaves an index. This creates an opportunity for active traders.
- kennethh 10y agoMost indexes are fairly predictable, so the changes are usually frontrunnered by index funds and traders.