re: techno8 "Apart from them, the passive index funds will...

re: techno8 "Apart from them, the passive index funds will continue selling next week, when they adjust their index funds for the Dec. period, starting Monday, because the market capitalisation of TLS has fallen."

An Index fund is passive because it does not have to actively adjust anything.....They replicate an index

the falling shareprice means their tls holdings are already worth less ,, and match the index weight always...

index funds ( a part from index additions and exclusions )
only buy or sell to match the funds own investing inflows or redemption outflows..

I would thing something like Vanguard... Has a net inflow of $$$ into it's funds So index funds like this in this market.... Would be buyers of TLS not sellers..

They have to buy the index...More $$$ flow into the fund they buy TLS and everything else...

The mechanical replication of the index automatically tracks the index passively.. hence the low turnover and low fee and taxes nature of index funds....


Tls falls and becomes less of the index
well it is automatically less of the funds investment..

The same all the way down,, if TLS leaves the index then index fund will sell but not before..

same with rising stocks .. they make up more of the funds holdings automatically ( passively )

An Index fund is just a replication of the index..

motorway