Jay Vivian: In my view and in my experience as a large asset manager, indexing is really attractive. But some people have this intuition that if you index you’re never going to beat the market. You’re never going to do really well. And that’s right. You’re never going to do really well compared to the guy who’s in the top decile, to that guy that’s going to do really well.
From my point of view, the idea is that you’re also not going to do really badly. So you’re partly cutting off the tails. And it’s really beneficial, because sometimes losing those tails is way better than gaining the upside. So that’s an interesting insight to indexing.