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>index funds beat active fund management constantly over longer periods This was only the case because 'long periods' include the periods in which free riders
by kolbe 8y ago
>index funds beat active fund management constantly over longer periods
This was only the case because 'long periods' include the periods in which free riders (indexes) were small relative to the active and activist shareholders.
- nabla9 8y agoThis is still the case and nothing indicates that things have changed. Index funds have two main benefits: * Lower cost, * Never miss a new trend. At any moment only handful of stocks are responsible for disproportionate growth and index funds catch them all.