To help investors and advisors make smarter choices, we’ve released "A Practical Guide to Selecting an Index Fund"—a concise, research-backed framework that cuts through the noise and provides a clear roadmap for identifying the right index funds while avoiding hidden risks.
In this Guide , you’ll learn more about the:
Passive Investing Excels in the Right Markets, but Challenges Remain
While passive investing thrives in efficient markets with broad coverage and high liquidity, even so-called high-quality indexes may face challenges due to nuances in market depth limitations and execution risks that investors often overlook.
Not All Indexes Are Built on Sound Economic Logic
Many indexes, including the Nasdaq-100 and Dow Jones Industrial Average, rely on arbitrary rules rather than sound investment principles.
The Invisible Forces Behind ETFs: Market Makers Matter More Than You Think
Investors underestimate the critical role of market makers in ETF efficiency. Weak market-making support can lead to wider bid-ask spreads, price dislocations, and higher trading costs, quietly eroding the benefits of passive investing.
