$3 trillion — Why Index Funds Are So Hot

3 min readJun 3, 2018

“Don’t look for the needle in the haystack. Just buy the haystack!” John C. Bogle, founder of The Vanguard Group and inventor of the index fund.

Index funds in the traditional stock market have grown immensely. Vanguard alone, the index fund specialist, has more than $3 trillion in its index funds.

What is an Index Fund?

Index funds aim to track the performance of a specific index. The value of the index fund will go up or down as the index goes up or down. Index funds typically have lower costs than actively managed funds because the portfolio manager doesn’t have to do as much research or make as many investment decisions.

Active vs Passive Management

Active management means that the portfolio manager buys and sells investments, attempting to outperform the return of the overall market or another identified benchmark. Passive management involves buying a portfolio of securities designed to track the performance of a benchmark index. The fund’s holdings are only adjusted if there is an adjustment in the components of the index.

Tokenized Index Fund

“A tokenized index fund is a new type of investment fund”

The Ethereum blockchain provides a trust-less and transparent platform that allows tokens to be easily transferred. This removes the need for a third party to keep track of investment accounts and their investors. Using the Ethereum network, a token holder can trade their token with no entry or exit fee bar the transfer fee charged by the Ethereum network. For example, each Tripterium T50 token represent its share of the underlying assets within the fund.

Tokenized Index Fund Benefits

Simplicity. There is no need to pick a winner because the tokenized index fund makes it easy for anyone to own a diverse crypto-portfolio by owning a single token.

“That promise of simplicity is what is so exciting about Tripterium T50. Anyone is able to invest in the top 50 cryptocurrencies by buying a single token”

What the Tripterium T50 Index Fund Does Right

✅No exit fees

✅No broker fees

✅No advice fees

✅Diversified exposure: Broad exposure to a diverse set of the top 50 cryptocurrencies

✅Higher returns: index funds have consistently outperformed the average managed fund

✅Benefit from the concept of compounding interest, which increases the net asset value of the fund

✅Tripterium Venture Capital Fund: consistently injecting new money into the Tripterium T50 index fund

✅Institutional marketing: Tripterium T50 will be marketed to institutional investors, therefore increasing the T50 token price premium

✅Liquidation option: providing a price floor for the T50 token, ensuring that the T50 token does not fall beneath the token’s share of the net asset value of the fund

✅Free coins from hard fork: a cryptocurrency hard fork is when a single cryptocurrency splits in two. The value of the free coins will be put back into the Tripterium T50 index fund, increasing the net asset value of the fund

✅Liquidity: Tripterium T50 tokens are based on the ERC20 token standard that is secure, can be easily stored in any Ethereum wallet, and can be easily bought or sold. The ERC20 standard is supported by all the top cryptocurrency exchanges

✅Weekly rebalancing: Given the volatile nature of the crypto market, and how quickly coins can rise into and fall out of the top 50, frequent rebalancing is a must.

✅Stakes coins like Dash and NEO to take advantage of the large amount of coins it has in a way individual investors can’t.

Extra Benefits for ICO Participants

✅Free membership to the exclusive Tripterium Founders Club

✅Access great pre-ICO discounts and bonuses through the Tripterium Founders Club

$3 trillion — Why Index Funds Are So Hot

Written by Kenneth Omoya