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I'm a fan of index funds but part of me can't help but wonder if this development will result in actively-managed funds and wealthy individual investors having
by chiph 7y ago
I'm a fan of index funds but part of me can't help but wonder if this development will result in actively-managed funds and wealthy individual investors having outsized influence on market direction?
- RickJWagner 7y agoWhy would that be? The actively-managed funds will be less relevant, holding fewer dollars and fewer shares purchased.
- Scoundreller 7y agoIt does give them more profit to take if they had a better idea of the « true » value of a stock, since everybody else has given up on paying people for that methodology.
- johntb86 7y agoChanges in stock price are measured by the prices that trades happen at, and passively managed funds are much less likely to do trades (Per dollar invested).