RT Journal Article SR Electronic T1 Equity Index Funds Have Lost Their Way JF The Journal of Portfolio Management FD Institutional Investor Journals SP 55 OP 64 DO 10.3905/jpm.2002.319832 VO 28 IS 2 A1 Gary L. Gastineau YR 2002 UL https://pm-research.com/content/28/2/55.abstract AB The author argues that equity index funds get more credit for low costs and high efficiency than they deserve. The original idea of a low–cost, low–turnover, diversified portfolio has been replaced by funds that deliver only on their pledges of low turnover and diversification. The concentration of trading around index changes causes investors to incur transaction costs far higher than the pioneers of indexing anticipated. The author concludes that index funds based on popular benchmark indexes have become a much more costly way to invest than they used to be–and than they need to be.