Quite the opposite. Index fund are busy eating the world alive.
If you've got massive money flowing into the top 100 in the index thanks to ETFs the smart money is on companies 101 - 120. Similar risk profiles to the top 100 but their price earnings profile hasn't been distorted yet but the wave of incoming index wave.
Passive is indeed the truth but don't swallow it wholesale...you're just buying into a top 100 self-reinforcing bubble that has no economic backing without realising it.
https://www.reuters.com/article/us-funds-blackrock-passive/l...
I'd hardly call that "eating the world alive." The only thing its eating so far is the absurd wealth management fees old school financial advisors used to make.
Also there's about 200 different indexes all slicing up the marketplace in various ways. Not every investor is buying the large cap, cap-weighted index (although most are).
Ultimately, this idea of passive "distorting" the markets just isn't true (also I'm not sure what you mean by "earnings profile"...earnings are set by consumer demand for a company's product, not investor demand for company stock). Active traders set prices, indexes simply follow the prices set by active traders. We are no where near the point where distortions would happen, and if we ever got to that point, there would be massive incentive to profit off of a easily predictable mispricing.
huh? RH's success comes from letting people play wall street hot shot trader for free. "OMG did you hear what Musk just said?".
If they think they're capturing the same kind of audience attention with a managed portfolio then they legit don't know which way is up.
>Titan picks the top 20 stocks based on data mined from the most prestigious hedge funds
That's index ETF thinking. The real hedge funds invest in opportunities that aren't even listed. You don't make hedge fund type return without hardcore research & hardcore risk taking on the basis of that research.
The whole "hedge fund" thing might make for decent initial PR but I predict this will backfire when people don't get the immediate visceral return they expected. Acorn's "Invest & grow" type PR slogans are better if you are going for managed because it'll align with the return.