That is typically due to low fees though, and not something that is inherently due to it being an index.
Hint: The people constructing the index are doing as much of an active choice of stocks as the active traders are. Nothing stops a trader from selecting stocks following the same strategies as how an index is selected.
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That is typically due to low fees though, and not something that is inherently due to it being an index.
Hint: The people constructing the index are doing as much of an active choice of stocks as the active traders are. Nothing stops a trader from selecting stocks following the same strategies as how an index is selected.