The Death of the Index Fund: What does it mean for you?

msmoney.substack.com

The Death of the Index Fund

The S&P 500 is fast-tracking mega-cap, deeply unprofitable companies into the index. What does it mean for you?

In 1976, a man who had recently been fired ran a financial experiment that Wall Street called “Bogle’s Folly.” John Bogle had just founded Vanguard and launched the first index mutual fund available to ordinary investors — a fund designed not to beat the S&P 500, but simply to match it. The premise was almost insultingly simple: stop paying managers to guess, buy everything in the index proportionally, and let the market do its work. Lower costs, less trading, performance that mirrored the broader market — and over time, returns that beat most actively managed funds.

Continue reading:

msmoney.substack.com

The Death of the Index Fund

The S&P 500 is fast-tracking mega-cap, deeply unprofitable companies into the index. What does it mean for you?