FYI: A topic that continues to gain attention is the massive increases that have occurred with market indexes. We regularly hear stories of firms being required to pay multiples of what they had been for some of the major ones.
Despite the evidence that less expensive equivalents are just as good,* many asset managers and consultants are being required to continue to use both the more popular and more expensive ones.
What alternatives do they have?
Perhaps it’s time to consider exchange traded funds (ETFs). And so,
Why not ETFs as benchmarks?
Is it reasonable to consider, for example, to use an S&P 500 ETF as an alternative to the S&P index? The ETF is, by design, intended to mimic the index. Not only is it perhaps a viable alternative, one might say that it’s a preferred alternative: it’s arguably better than the index itself! Consider the following:**
Regards,
Ted
https://spauldinggrp.com/etfs-as-benchmarks-is-the-time-right/?inf_contact_key=4649c3920c1917c3c535ff6463bf4476a8e1cffafc6754bff9c543525d0c42aa
