Index Funds Aren't Too Big, but Asset Managers Might Be
The attacks have been directed at the wrong target.
The history of index-fund criticisms runs like this:
1) They Are Silly Investments
By definition a portfolio that matches the overall market before expenses will trail that market after its expenses are paid. Who would buy a fund that is guaranteed to be below average?
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.