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A comment on Why Index Funds Are Like Subprime CDOs. Parent comment

Re:Why Index Funds Are Like Subprime CDOs by Torn on Wednesday September 04, 2019 @11:11PM (#20883558)
> His point is that the index funds don't own the stocks at all

This is misleading, I think. Depends on the fund. Some seek to match the benchmark through a certain exposure to derivatives and synthetic things. Others hold the stocks in proportion.

The vanguard funds I'm invested in don't have much synthetics - they own the stocks

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Re:Why Index Funds Are Like Subprime CDOs by daemin on Thursday September 05, 2019 @06:22AM (#20885341)
As far as I'm aware they also have flexibility in when they sell or buy stocks, so they don't need to buy them the second you move money in etc.
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