05-28-2021, 09:36 PM
Do ETFs really beating up active investing
<!-- SC_OFF --><div class="md"><p>We have data for like last 30 years.</p> <ol> <li>Buffet with Berkshire beating up S & P 500 and there is no dividend with Berkshire investment. It is tax optimal. Zero cost with provision and on top they performed much better in all crises.</li> <li>Scottish mortgage investment trust outperform S & P as well</li> <li>AUM of ETF has risen exponentially in the last 30 years, bigger part of new investment money going into ETFs, making a unique bubble. Let's say people panic and start massively selling ETFs. Indexs can drops for 50% or even more. What happened when new money stop coming to passive funds? </li> <li>Except few years, America has strong bull market for last three decades. It wasn't always like this. In 1930s to 1950s S & P 500 almost lost 3 decades. How ETFs will perform in long bear market? </li> <li>ETF is passive investment. But you still making an ACTIVE choice when pick up ETFs. Will be world ETF or will be S & P 500. There are like over 100 ETFs.</li> </ol> <p>Your thoughts?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Intrepid_Artist"> /u/Intrepid_Artist </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/nmy8ts/do_etfs_really_beating_up_active_investing/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/nmy8ts/do_etfs_really_beating_up_active_investing/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>We have data for like last 30 years.</p> <ol> <li>Buffet with Berkshire beating up S & P 500 and there is no dividend with Berkshire investment. It is tax optimal. Zero cost with provision and on top they performed much better in all crises.</li> <li>Scottish mortgage investment trust outperform S & P as well</li> <li>AUM of ETF has risen exponentially in the last 30 years, bigger part of new investment money going into ETFs, making a unique bubble. Let's say people panic and start massively selling ETFs. Indexs can drops for 50% or even more. What happened when new money stop coming to passive funds? </li> <li>Except few years, America has strong bull market for last three decades. It wasn't always like this. In 1930s to 1950s S & P 500 almost lost 3 decades. How ETFs will perform in long bear market? </li> <li>ETF is passive investment. But you still making an ACTIVE choice when pick up ETFs. Will be world ETF or will be S & P 500. There are like over 100 ETFs.</li> </ol> <p>Your thoughts?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Intrepid_Artist"> /u/Intrepid_Artist </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/nmy8ts/do_etfs_really_beating_up_active_investing/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/nmy8ts/do_etfs_really_beating_up_active_investing/">[comments]</a></span>Kind Regards R