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Investing 2: Index Funds & The Bet

Planet Money Summer School

CHAPTER

Why Index Funds Have Low Fees?

The idea of the index fund did finally start to catch on in the 19 nineties. If you take like all the funds out there, index funds are like zero point four % a decade. We wanted to see what giving up looks like, so we went to the room where they run their index hons. There's a handful of people in there, and they're very intentionally not picking stocks. It does seem boring. It does feel like giving up. The essence of boredom. I'll concede it. If you're in investing for excitement, you are a damned fool.

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