The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: rudged on May 27, 2016, 10:21:54 AM
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Is anyone out there familiar with the concept of "active indexing"? I ran across it in a TED talk. It seems like an oxymoron, but I thought I'd check to see whether anyone in the MMM community has an opinion about it.
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Providing information about what it is would be helpful to people. It's hard to comment on something without more information about it.
Having gone and found info on it myself, it sounds like a silly idea. It doesn't sound that unlike regular actively managed mutual funds. It will give you on average the index return, minus active management fees, minus extra transaction fees.
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I've got a business opportunity selling bottles of dehydrated water. Maybe I'm just not getting it, but it seems like you either believe the market is more efficient than you, or you don't. I didn't read into it very deeply, though.
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I saw the same TED talk. The guy never really explained how it worked. It didn't seem compelling enough to look into further, so I didn't.