3 ms·
Did index funds exist 100 years ago? I'm pretty sure passive investing is a more recent phenomenon.
by the_giraffe 6y ago
Did index funds exist 100 years ago? I'm pretty sure passive investing is a more recent phenomenon.
- deleted 6y ago[deleted]
- imtringued 6y ago>In 1926, it developed a 90-stock index, computed daily. https://en.wikipedia.org/wiki/S%26P_500#History https://en.wikipedia.org/wiki/S%26P_500#History This is just a technicality however. In practice you have to buy stocks according to the index yourself or invest into a fund that mirrors the index for you. The secret sauce in ETFs is that algorithms do the work of the fund manager and thus reduce costs.