Re:A critique of the claim that passive investing is a bubble
by C1sc0cat on Thursday September 05, 2019 @12:16PM
(#20888167)
They are mostly not doing physical replication (physically owning all the shares) but using synthetic means.
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Re:A critique of the claim that passive investing is a bubble
by 0xcafecafe on Thursday September 05, 2019 @12:37PM
(#20888369)
Not really. The most popular index funds physically invest their capital in the stocks making up the index:
https://www.investopedia.com/articles/markets/101415/4-best-...
Re:A critique of the claim that passive investing is a bubble
by C1sc0cat on Thursday September 05, 2019 @12:46PM
(#20888471)
That wasn't what the Article being critiqued said though.
Re:A critique of the claim that passive investing is a bubble
by 0xcafecafe on Thursday September 05, 2019 @12:53PM
(#20888550)
Correct. There are index mutual funds and index etfs. The article seemed to refer the latter.