Chris Hestelow / Are Passive Funds The REAL Bubble? Ep 525
About this episode
Chris Hestelow discusses the implications of passive funds and AI concentration risks in the market.
Almost 40% of the S&P 500 index fund sits in just 10 stocks. Yet, low cost, passive index funds are often marketed as a way to invest in many things at once. 9 of the 10 companies are directly exposed to the AI-thematic - something that may, or may not be a bubble, depending on who you listen to. They say the performance of actively managed funds, after fee, rarely outperform passive funds. So, does that mean we should park our intellect at the door? Chris Hestelow , Investment Specialist at Allan Gray * , talks to me about the 'Passive vs Active' debate, AI concentration risks in index funds, and reflexivity/dynamic feedback loops that distort true price discovery in markets. Book in a free 15-min phone call with Darcy Ungaro (financial adviser). Sign up to the fortnightly newsletter! *I may recommend Allan Gray funds in the course of providing KiwiSaver or investment advice. Thank You Swyftx : W ith over 1 million customers across New Zealand and Australia. Ask yourself …”Where can crypto take you?". Check out Swyftx . Provincia : Whether you're looking to invest, or you have a commercial property that needs better management - they the true one-stop shop for wholesale…
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