Passive investing no longer as simple as tracking an index
There are now 70 times more stock market indices than there are quoted stocks in the world
28 September 2020 - 16:46
Index tracking, or passive investing, used to be sold on its simplicity — you buy the market and you don’t need to worry about identifying a winning fund manager whose strategy will keep on earning good returns.
But the market of indices you can track has broadened so much that just choosing which index to track is now regarded as a more complex, active decision the returns of which could be for better or worse...
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