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Yes but take Enron for example or any other value trap an index fund must buy those. And the Massive buying of indexes bids up the price of shares like FANG's
by walshemj 9y ago
Yes but take Enron for example or any other value trap an index fund must buy those.
And the Massive buying of indexes bids up the price of shares like FANG's beyond the shares real value.
- rpedela 9y agoOn average, one company in the portfolio going bankrupt isn't going to make much of a difference assuming the portfolio is large enough. Most index funds have a large enough portfolio.