the 5 reasons for the boom in index funds invested in stocks

the 5 reasons for the boom in index funds invested in stocks
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FHowever, when investing in the stock market, opt for funds actively managed by managers who determine the optimal allocation based on their macroeconomic analysis (evolution of growth, interest rates, etc.) and microeconomic analysis (study of sector or company with regard to its present or future profits, its stock market behavior, etc.) or prefer funds that reproduce market indices? Considered more noble, the first approach is favored.

Except that the performances of the latter – ETFs (Exchange Traded Funds), or trackers – are often superior, with active managers struggling to beat the indices which serve as their reference (Benchmark) over time. Less than 10% achieve this over three years.

A type of fund that reproduces the performance of the CAC 40 or Nasdaq

An ETF is a fund which, through its composition, reproduces the performance of an index. It can be a general index such as the CAC 40, the American indices S&P 500 or Nasdaq, global indices with the MSCI World, or sectoral indices on raw materials or themes (energy transition, electronic commerce, carbon, cybersecurity, etc.).

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