A Better Way to Invest and Why the Rush to Index Funds

In recent years investors have shifted to index funds from active fund managers in a big way. Some, including Michael Burry – which was the story of the “Big Short”, believe that small-cap and particularly small-cap value is the place to be given the rush to index funds. Why? Most index funds are capitalization weighted which means the largest stock, gets the largest percentage of the portfolio. This ends up putting most of the money invested into generally larger capitalization companies. Is there a better way than active and indexing? We believe so and will cover in this show.

In this show you will learn about:

  • Indexing vs. “smart” indexing
  • How most indexes are created
  • Where does your money goes when you invest in and index?
  • Why are investors moving out of actively managed funds?
  • A way you can invest and get the best of both active and passive

 

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