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Barry Ritholtz

Index Funds Will Be Fine Confronting Cruel Markets

The claim that passive investors will suffer more in an equity slump doesn’t hold up.

Plenty of pain to go around. — Plenty of pain to go around.
Source: Fairfax Media/Getty Images

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August 15, 2018, 5:56 PM UTC

Every now and again, I come across a point of view that is so wrongheaded and misinformed that I am compelled to push back against it. The claim that passively managed index funds will blow up in the next stock market correction is exactly such a viewpoint -- nevermind that many of these claims and concerns have already been debunked.