2023-06-08 08:45:27
IIn theory, it’s simple: nobody can beat the market in the long run. This has been well known since the research of Eugene Fama, the Nobel Prize winner in economics, and has been proven by numerous studies. Exchange-traded funds, better known by their acronym ETF, have been on the rise since this view has become more widespread, even among ordinary investors.
Investors worldwide have invested the enormous sum of almost ten trillion dollars in these funds, which, in their simplest form, map a stock market index like the Dax one-to-one. Unlike a classic fund manager, ETFs don’t even try to outperform the stock market as a whole. In Germany, too, more and more money is flowing into these index funds, which are characterized by low fees and a straightforward basic concept.
#ETFs #classic #funds