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I wonder about this too. What if I, as an index fund holder do not want the fund to buy up junk like lyft and uber?
by mrhappyunhappy 7y ago
I wonder about this too. What if I, as an index fund holder do not want the fund to buy up junk like lyft and uber?
- MichaelDickens 7y agoThe purpose of an index fund is to buy the entire market, under the assumption that an active fund will not outperform the market (after costs). If you want to avoid certain companies, you should buy an actively managed fund.
- MrPowers 7y agoThere are different types of index funds. There are market capitalization weighted index funds that fit your description of buying the entire market, but there are also small cap funds, sector funds, value funds, etc. You can avoid certain companies (e.g. FAANG stocks) by buying certain indexes (e.g. a value index).
- acranox 7y agoI think that’s where “socially responsible” investing comes into play. ie https://www.morningstar.com/funds/XNAS/VFTSX/betaquote.html https://www.morningstar.com/funds/XNAS/VFTSX/betaquote.html