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Index funds are the worst. Everytime they hit the motherload, they have to sell it early on, so that the portfolio stays "balanced". You cannot have a fund tha
by timonoko 2y ago
Index funds are the worst. Everytime they hit the motherload, they have to sell it early on, so that the portfolio stays "balanced".
You cannot have a fund that has 95% Nvidia, it is (probably) against the law.
- markisus 2y agoI thought it was the opposite of what you’re saying. Index funds buy more of stocks that are higher. And why would a 95 percent NVIDIA be against the law? It just wouldn’t be an index fund.
- timonoko 2y agoIt seems to work so. Both Nokia and Nvidia started to disappear when they hit the 30% mark. Might depend on the country too. -- "Index Fund" is often run by robots and exempt from some curbs and cautions.
- archagon 2y agoMaybe there’s a good reason for that. For example, NVDA’s performance has been highly erratic since their initial AI-fueled bump.