Are index funds actually undermining the diversification they were there to create? Once again,...

|By:, SA News Editor

Are index funds actually undermining the diversification they were there to create? Once again, the issue is correlation: Last year was a terrible one for stock pickers (only 17% of large U.S. stock funds beat their benchmark), and a market that increasingly moves as one school of fish leaves some fundholders vulnerable to an unexpected shock.