Indexation’s great argument is diversification of security-specific risk and the performance benefit of low (or even no) fees.  

The performance debate has now been answered; you need wait no longer. With ETFs’ 20th anniversary upon us, which also encompasses a full market cycle, equity ETFs as a class — growth and value, domestic and international, developed market and emerging, biotech index funds to IT to financials — have under-performed bonds. Over these two decades, they haven’t even come close to the universally presumed 10% return. From here forward, they might not do even as well as that.

The risk debate continues. But it has now moved to a higher-stakes plane.  Acceded: indexation is an excellent means to diversify into and across the important asset classes much or most of the time.  Counter: by definition, indexation also exposes one’s capital into and across all the systemic risks that have destroyed investors’ savings during economic and political crisis and upheavals. Those feel like rare events only to those who don’t review the history — even modern history. It happens again and again, and today’s valuations and systemic risks are measured in extremes. There is a time and place for indexation. Now is a time to learn about upheaval investing: concentration as a method to diversify against systemic risk