Demoralizing Realization that I can't beat an Index Fund

[Aaron]

Anyone else come to the same conclusion or want to chip in with a story or two?

I came to the conclusion that I am too lazy to do the required reading to understand an investment also I maybe too stupid but I have been waiting for GFC2 before starting with a deposit into smartshares and a regular automatic payment thereafter. So far not paying off.

I can't see how passive index funds work if they dominate the market though. They are mindlessly buying based on the "price" of the companies not trying to establish the "value" Without active investors no one is doing any thinking.
I am hoping that the increase in passive index funds will work the other way if central banks ever allow markets to fall (I am thinking of the Japanese Central banks ETF purchases). Is there any way that this hasn't helped keep prices going up. Low interest rates are forcing people into shares, easy money and margin lending will be playing a part. If this virtuous upward cycle ever hits a snag there might be a catastrophe and a good investing opportunity.

https://www.bloomberg.com/news/artic...wing-next-year

The JCB owns 74% of the ETF market. I wonder if Exchange Traded Funds aren't as big on the Nikkei otherwise the 74% figure sounds a little crazy to me. It could almost be like the nationalisation of Japanese industry if a "strong" government got in and demanded control of the JCBs balance sheet. So much being centralised can only be a bad thing in my view.

[Valiant]

Thanks for the direction Lawstudent.
Not looking directly at passive index funds at the moment. I do however have investments in both Quaystreet and Milford Asset, both have performed well over the past few years.

[Valiant]

There is the ETF thread
https://www.sharetrader.co.nz/showthread.php?10835-ETF-s

You can compare NZ investment platforms and fees at:
https://thesmartandlazy.com/
https://www.moneyhub.co.nz/investing--saving.html

and learn about other people's stories at:
https://www.thehappysaver.com/

Good luck

I will check these out. Always interesting to compare the fees across the different platforms and fund types, it all adds up.

[DarkHorse]

Some very pertinent research: https://www.livewiremarkets.com/wire...ive-management