Quote Originally Posted by FIsaver View Post
While I agree that ETF's are a no brainer in that they are low cost and you can be well diversified. Has anyone thought about future returns? With more and more people pumping regularly into a set number of companies e.g. the S&P500, I wonder if future returns will be less than historic.
Interesting question. I do wonder though what this premise is based on? Not because companies are going to be making less money than in the past because you allude to more people pumping regularly eg. However if ppl were not pumping regularly into ETF's surely they would be pumping money into other funds and directly into shares themselves that are also part of the S&P 500 and thus not actually change anything? Thats my take on it but I am happy to hear other thoughts. I thought the NZ market has been distorted slightly the last 10 years with the advent of Kiwisaver (ie a lot more funds in than out in its initial stages) until someone pointed out that the amount of $ into NZ equities from Kiwisaver is not as large as I thought it might have been.