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The Hidden Costs of Passive Investing Index funds and systematic strategies face trading frictions that quietly erode investor returns

Academic finance has uncovered powerful insights, from the efficient-market hypothesis to the Fama-French five-factor model. Unlike proprietary trading algorithms, these breakthroughs are published openly and accessible to anyone willing to dive into the research. But, as David Booth, chairman of Di.

But, as David Booth, chairman of Di.

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