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> but index funds would start performing worse than the market when they got to 99% They can't perform worse than the market, because they own shares in exactl
by OscarCunningham 7y ago
> but index funds would start performing worse than the market when they got to 99%
They can't perform worse than the market, because they own shares in exactly the same proportion as the market.
- rightbyte 7y agoThey should perform worse than the market becouse they own crasching stocks and don't own stocks that climb into eg F500 to replace the crashing one.. The only way to performe at market average is to own a proportional share of all stocks and have no transaction costs.
- conanbatt 7y agoIndex fund replicate indexes, they are not the indexes.