Jack Bogle Calls Indexing Critics 'Idiotic'

The video discusses the rise of index funds, their dominance in the investment industry, and the criticisms they face, such as being compared to Marxism. It addresses the impact of passive investing on market efficiency and research, highlighting that index funds often outperform active managers due to lower costs. The discussion includes the potential effects on market dynamics if indexing continues to grow.

What has been a significant challenge for active money managers due to the rise of index funds?

• Difficulty in outperforming low-cost index funds

• Higher costs of managing funds

• Increased competition from other active managers

• Lack of investment opportunities

How does the speaker respond to the criticism that index investing is worse than Marxism?

• By stating that index funds add value to society

• By agreeing with the criticism

• By ignoring the criticism

• By suggesting that index funds should be regulated

What comparison does the speaker make between the financial industry and another industry?

• The financial industry and the technology industry

• The financial industry and the mining industry

• The financial industry and the manufacturing industry

• The financial industry and the healthcare industry

At what percentage of market indexing does the speaker suggest that market inefficiency might become noticeable?

• 30% to 40%

• 90% to 95%

• 10% to 20%

• 50% to 60%

What is one reason given for the superior performance of index funds over active managers?

• Better market predictions

• Government subsidies

• Lower fund expense ratios and turnover

• Higher risk-taking