We recently caught up with Som Seif, CEO, Purpose Investments in Toronto. We asked him for his perspective on whether the investment flows into Indexing or Index ETFs have distorted the valuations of index stocks, and thus the market.
There's been a fair amount of controversy surrounding the popularity of Index ETFs, and debate surrounding not only the concept of the efficency and low cost of index investing, but of the possible unintended consequences of indiscriminate buying of [all] equities, in any particular index, en masse.
Som Seif sheds some light on some of the behind-the-scenes aspects that have not been a more significant part of the debate.
