Index funds are great tools to pursue your investment goals. While they’re often sold as passive, and that’s probably true if you can find one that covers all global markets, some are very narrow in focus and guided by rules that can make them more active than passive.
This can be a trap for investors, especially if the index fund they choose doesn’t take off and attract a consistent flow of funds that makes it sustainable for the manager.
With that in mind, we take a look some various quirks around index funds to look out for, and highlight the reality that we’re all faced with making active choices as investors.
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