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A comment on The Financial Industry Is Having Its Napster Moment. Parent comment

Re:The Financial Industry Is Having Its Napster Moment by HappyTypist on Thursday April 07, 2016 @07:15PM (#11451451)
Not really, the big index fund providers are smart and they even pre emptively buy companies likely to be added to the index, and they sometimes wait a bit before rebalancing to their index. This intentional randomness makes it very difficult to front run index funds.
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Re:The Financial Industry Is Having Its Napster Moment by SilasX on Thursday April 07, 2016 @07:57PM (#11451648)
Isn't that, itself, a species of active management?
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Re:The Financial Industry Is Having Its Napster Moment by arielweisberg on Thursday April 07, 2016 @08:18PM (#11451730)
It could be construed as such. Really it's all about execution strategy.

If your concern is that it's active you can always check to see how well the fund tracks the index. The reality is that they track the indexes so well that it doesn't matter. At least for total market or S&P 500 funds.

There are problematic indexes that don't seem to get tracked well by funds.

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