Consequences of Index Fund and ETF Regulations and Restrictions

The original intention of the Index Fund and ETF Regulations and Restrictions is to limit the concentration of holdings, but the result is that the trends of market indexes and ETFs are almost linked to these few large-capitalization stocks. As long as these few large-capitalization stocks surge or plummet, these automated programmed transactions will be triggered, and huge amounts of buying and selling will occur simultaneously.

S&P 500 index, the only stock worth holding forever

Active investors should also add market index to portfolio — the reason is simple, it’s the only stock worth holding forever. It’s hard for the average person to keep up with the times, to identify the best companies of the day, and to maintain the best possible holdings in your portfolio — but the S&P 500 can do that for you.

error: Content is protected !!