4 ms·
Yeah but Matt Levine is wrong. 1) Index funds and ETFs are highly active. They're just low-cost due to largely algorithmic decisions but at all of the edge ca
by lesuorac 4mo ago
Yeah but Matt Levine is wrong.
1) Index funds and ETFs are highly active.
They're just low-cost due to largely algorithmic decisions but at all of the edge cases manual _active_ decisions are made.
IIRC, in this podcast Vanguard goes into detail about all of the active decisions they do [1]. It's long because uh, they do a lot.
2) You're in the index fund game because "you liked that index". There are literally thousands of ETFs. Saying "you want the market" is just wrong, you wanted a specific slice of the market and if the ETF changes the slice under you then that feels like a bait and switch.
[1]: https://www.youtube.com/watch?v=hQVz_VGJNnY https://www.youtube.com/watch?v=hQVz_VGJNnY