Re:A critique of the claim that passive investing is a bubble
by JumpCrisscross on Thursday September 05, 2019 @01:37PM
(#20889046)
> And a lot of index fund investors are buy-and-hold
But index funds themselves aren't. They have to sell stock when units are destroyed and vice versa. In addition to other factors, this can result in weird tax effects as well as tracking error to the index.
But index funds themselves aren't. They have to sell stock when units are destroyed and vice versa. In addition to other factors, this can result in weird tax effects as well as tracking error to the index.