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mk · 1686 days ago · link · · parent · post: Ben Carlson: Debunking the Silly “Passive is a Bubble” Myth
I believe so. My understanding is that in ETF rebalancing equities that are part of the basket are treated like nothing but paper, mindlessly bought, mindlessly sold. Unlike a mutual fund, there is no one worried about the value of the ETF. And when lots of ETFs need to do the same thing with the same stock, it could be really good or really bad for the stock. What I meant, is that the same mindless ETF inclusion that gave life to equities will remove it.The same mindless mechanism that gave them life will kill them off.