The Investment Company Institute reports that “index funds” now hold close to $10 trillion in assets. Robin Wigglesworth reports in the Financial Times that this total “is still just a Index-fund managers don't try to cherry pick stocks that might outperform. Instead, they hold a preselected list of companies, basically conceding that beating the market is a tough if not futile Index Fund Bubble Claims. Burry is the most recent in a long string of famous investors that have argued against the proliferation of index funds. Ever since index funds were created by Vanguard in the 1970’s, active fund managers who charge high fees have been critical of their lower-cost automated competitors, and for good reason. Q3 2019 hedge fund letters, conferences and more. Transcript. Good day fellow investors. Since Dr. Michael Burry discussed how index funds are in a bubble and creating a big danger comparing it to the 2008 crisis. The topic on the index fund has been really, really hot on YouTube. Hedge fund managers like Michael Burry warn of a bubble in index funds and ETFs. But Morningstar data suggests that individual investors aren't concerned. But for the foreseeable future, the “index fund bubble” is a bubble that benefits every investor in the world. Long may it continue to inflate. Letters in response to this column: Is There an Index Fund Stock Bubble? Passive investing has become so popular, some top investors worry that it's inflating the value of many stocks. Motley Fool Staff
15 Sep 2017 Best of all for their investors, index funds have consistently beaten the performance of stock-pickers and actively managed funds, whose higher 16 Nov 2016 The sell-off that follows a market downturn will tip the balance from passive to active management, fund manager John Rogers predicts. His premise is that many stocks that index funds invest in have low liquidity The article is claiming that index funds are an overhyped bubble, so of course
Michael Burry, who in my opinion is a relatively brilliant and well-known financial figure, voiced his concerns that we may be inflating a big bubble by concentrating too much of our money in passively managed index funds. If Burry is right about the index fund bubble, then weakening the price discovery process should be the least of investors' worries. According to Burry, the real risk is that liquidity will dry up There’s a ‘bubble’ in passive investing, says investor made famous by ‘Big Short’ Academic research published in June shows that three index-fund managers together manage more than Concerns are growing that passive investing is dangerous for the global markets. Here's why you shouldn't change up your investment strategy. A lot of mutual fund investors heard the phrase “index fund bubble” for the first time this week. Without knowing what one is, what it could look like or the motives of the famous money Are index funds a bubble in the making? It's fun to speculate what an index fund bubble would look like (Huge-cap companies going on sprees of mergers and acquisitions. Barbers and taxi drivers telling you they're going to retire at 30 based on their index fund portfolio). But presumably it's rather easy to beat the pure mechanics of index The End Of The Index Fund Bubble Is At Hand - Passive Outperformance Is Cyclical. May 25, 2017 8:00 AM ET |
4 Sep 2019 ETFs and index funds have become really popular even in asset managers' funds. Are big firms getting higher valuations without much review 11 Sep 2019 The rise of passive investment vehicles like index funds and exchange-traded funds (ETFs) has resulted in the creation of a bubble, similar to 10 Sep 2019 Professor Mo Chaudhury weighs in on the market risks caused by the growing popularity of index funds. Read more. 29 Aug 2019 In an emailed comment to Bloomberg, Burry said: 'The bubble in passive investing through ETFs and index funds as well as the trend to very 5 Jul 2018 Index funds are passive. Yet a concern that is often heard is that index investing helps to inflate bubbles, because index funds are forced to put
Index Fund Bubble Claims. Burry is the most recent in a long string of famous investors that have argued against the proliferation of index funds. Ever since index funds were created by Vanguard in the 1970’s, active fund managers who charge high fees have been critical of their lower-cost automated competitors, and for good reason. Q3 2019 hedge fund letters, conferences and more. Transcript. Good day fellow investors. Since Dr. Michael Burry discussed how index funds are in a bubble and creating a big danger comparing it to the 2008 crisis. The topic on the index fund has been really, really hot on YouTube. Hedge fund managers like Michael Burry warn of a bubble in index funds and ETFs. But Morningstar data suggests that individual investors aren't concerned. But for the foreseeable future, the “index fund bubble” is a bubble that benefits every investor in the world. Long may it continue to inflate. Letters in response to this column: Is There an Index Fund Stock Bubble? Passive investing has become so popular, some top investors worry that it's inflating the value of many stocks. Motley Fool Staff