Opinion
Index investing isn’t as passive – or profitable – as you think
Before their inclusion in the US S&P 500 last year, activewear maker Lululemon and ride-share company Uber had been among the top 500 US largest stocks by market capitalisation for more than four years.
Bhanu SinghContributorIndex funds have surged in popularity because they typically have lower fees and because, generally speaking, conventional active funds have consistently failed to beat the market.
But if you think that index investing is a passive way to access the market, you might want to think again. They might do a great job of tracking their index, but how many people give thought to what is in the index, who decides what’s in the index, and how those decisions are made?
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