> but cost 20X as much due to lower economies of scale, broadly because people don't want it.
For any existing fund manager who tracks an index (i.e. Vanguard), this shouldn't be too difficult or expensive. They're already buying/selling a TON of SP500 shares at the close of trading day. Now they just need to subtract some of those buys/sell for the overvalued companies that people do not want. Am I missing something?
EDIT: Oh, I guess the (SEC?) would require a different fund management and prospectus for every index "smart beta" permutation, and therefore wouldn't be realistic.
Whenever I feel the need to use the adverb "just" when talking about something I think someone else should do, it usually means my understanding of the situation is the tip of an iceberg I can't fully see.
For any existing fund manager who tracks an index (i.e. Vanguard), this shouldn't be too difficult or expensive. They're already buying/selling a TON of SP500 shares at the close of trading day. Now they just need to subtract some of those buys/sell for the overvalued companies that people do not want. Am I missing something?
EDIT: Oh, I guess the (SEC?) would require a different fund management and prospectus for every index "smart beta" permutation, and therefore wouldn't be realistic.