Unraveling the Truth About ETFs: Benefits, Analysis, and the Indexing Bubble Myth

Unraveling the Truth About ETFs: Benefits, Analysis, and the Indexing Bubble Myth

How the ETF market is changing, why ETFs should be your preferred investment vehicle, and how to analyze ETFs to generate better investment performance.

Topics covered include:

  • How large have fund flows been away from active mutual funds into ETFs
  • How big are the largest ETF families and how has their market share grown
  • Why the rise of active ETFs blurs the distinction between active and passive investing
  • Why there doesn't appear to be an indexing price bubble, but the rise of passive investing has impacted volatility and decreased stock price informativeness
  • A framework for how to analyze markets and select ETFs for your portfolio


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Show Notes

Global Fund Flows Dominated by Fixed-Income and ETFs—Morningstar

It’s Official: Passive Funds Overtake Active Funds by Adam Sabban—Morningstar

ETF Issuer League Tables—VettaFi

Global ETF Market Facts: three things to know from Q3 2023 by Samara Cohen—iShares

Rise of Passive Investing - Effects on Price Level, Market Volatility, and Price Informativeness by Pawel Bednarek—SSRN

Investments Mentioned

SPDR® S&P 500® ETF Trust (SPY)

JPMorgan Equity Premium Income ETF (JEPI)

Avantis US Small Cap Value ETF (AVUV)

Related Episodes

426: Which is Best – Active or Passive, ETFs or Funds?

321: How to Analyze Complex Investments

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