Why Cheap Indexing Isn't the Best

Why Cheap Indexing Isn't the Best

From WestPac Wealth Investments by Westpac Wealth Partners

February 16, 2026 · 13 min

About this episode

This episode discusses the limitations of low-cost indexing and the importance of a comprehensive investment strategy.

Is low-cost indexing enough? Or are investors missing the bigger picture? Index funds have transformed investing. They’re efficient, inexpensive, and widely accessible. But focusing solely on cost can oversimplify how portfolios actually generate returns. In this episode, we examine why the cheapest index fund may not represent a complete investment strategy. We discuss expected returns, risk premiums, diversification, and the importance of thoughtful portfolio design. Rather than chasing the...

People in this episode

Host: Westpac Wealth Partners

Topics covered

  • indexing
  • investment strategy
  • portfolio design
  • risk premiums
  • diversification

Keywords

  • index funds
  • investment strategy
  • portfolio design
  • risk premiums
  • diversification

Mentioned in this episode

Organizations: index funds

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