Episode Details

In this session, we look at the choices available for investors who choose the passive investing route. The first option is to invest in index funds, which have grown in terms of both dollar value and variety over the last four decades. They offer the benefits of tracking indices (of whichever asset class you want) with very little cost. The second is to choose among an ever-increasing array of exchange-traded funds (ETF), which also try to mimic indices, but can be bought and sold like individual stocks. The third is to try to have your cake and eat it too, by investing in enhanced index funds that claim to offer the benefits of index funds (low costs and index integrity) while generating slightly higher returns (using derivatives or by over investing in the best stocks in the index).
Playlist for class (Intro + 42 sessions): https://youtube.com/playlist?list=PLUkh9m2BorqnZGADa8cTzeJblmrZY_SqP&si=zI2pk17pJeld4nWR
Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilslides25/session37.pdf
Post-class test: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session37test.pdf
Post-class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session37soln.pdf

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