alt Hacker NewsYes
Index and other funds are forced to buy as their contractual mandate is to follow the index or methodology set out by the fund.
Yes
Index and other funds are forced to buy as their contractual mandate is to follow the index or methodology set out by the fund.
They have some flexibility.
And beyond that there is a lot of capital in active funds that use an index as their benchmark. So they don’t have to buy anything, but they are trying to beat their benchmark so not buying is an active decision with risk.