Why doesn’t everyone just buy index funds?

Compelling evidence suggests index funds are a (if not one of the most) sensible option for growing wealth over the long term... so why is everyone not just buying index funds? Studies suggests actively managed funds consistently under-perform, when compared with passive investing options, mainly due to the consideration of fees.
In this video i explore some of the key reasons I think people aren't just buying index funds.
Find out more about stockspots and our chosen ETFs here: www.stockspot.com.au/invest-i...
ETFs compared: www.staging.investspot.com.au...
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Read more:
The paradox of skill: why active funds disappoint every year / blog.stockspot.com.au/paradox...
What are the best Australian high dividend ETFs of 2024? / blog.stockspot.com.au/what-ar...
Why we don't recommend active funds / blog.stockspot.com.au/why-we-...
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Disclaimer: Stockspot Pty Ltd ABN 87 163 214 319 is a licensed Australian Financial Services provider (AFSL 536082) regulated by ASIC. Any advice contained in this video is general advice only and has been prepared without considering your objectives, financial situation or needs. Before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate taxation and legal advice. Investing into financial products involves risk. Past performance of financial products are no assurance of future performance. Please read our Financial Services Guide on stockspot.com.au before deciding whether to obtain financial services from us.
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[@Emrahsuna]

Thanks Chris, Good Information

[@tonytan5945]

I’ll give my 2 cents, firstly there’s very little published research if any about managed funds (sans fees) compared with low cost index funds. It would be interesting to see and would guess that the majority of managed funds actually out perform the index over a set period BEFORE FEES. Secondly, the choice is very dependent on your age and time horizon. Index ETFs haven’t been around that long, maybe roughly 10 yrs in the public eye, which means a lot of retirees who started investing in the 1980s-90s are still holding onto individual shares which have probably done well over those decades, hence you have a large number of investors holding a greater number of individual shares or managed funds, while the younger groups who started in the 2010s would probably be more in index ETFs purely as a function of their age and time in market. Things will change in another 20 years when these young investors become the majority holders and there will be a flip to majority index etf holders. There will be intrinsic wider issues when that happens but nobody knows the significance till it happens.

[@MohitParikhwriter]

Bang on point. Also, stock picking mindset is not too different from creating a Fantasy XI sports team. You tend to believe you see patterns others don't.

[@anilmehta7821]

Admire your true and honest opinion

[@baysidelad1]

Like the look of your new 'ETF' super fund, but unfortunately you don't put a cap on the admin fees for high ($1M+) account balance (i.e. like all major Industry Funds do!), so unfortunately, I'll have to pass :(

[@ruriruri03]

3:17 breaking the 4th wall. Hopium. Learn a new word.