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A comment on A critique of the claim that passive investing is a bubble. Parent comment

Re:A critique of the claim that passive investing is a bubble by lovecg on Thursday September 05, 2019 @04:42PM (#20890468)
The argument is that the automation at scale that ETFs bring to the table changes the game qualitatively. How many people would really buy and sell thousands of individual stocks in a correlated fashion if this infrastructure didn’t exist?
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Re:A critique of the claim that passive investing is a bubble by vkou on Thursday September 05, 2019 @05:51PM (#20890963)
No, they'd have a dozen individual stocks that they would own, and when you combine fifty million people, each owning a dozen individual stocks, you'd get a pretty accurate proxy for the S&P 500.

They'd still follow the same herd mentality that they would, had they owned ETFs.

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