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Indexes are affected and changed by asset flows into strategies which target those indexes. This is true when hundreds of billions of dollars seek low price-to-book strategies, and for the entire market as a whole. Fund flows affect everything, especially when those flows have T after them. To this point, this has worked in one direction, for the most part. Portfolios with decent valuations, by historical standards, are only achievable today through portfolios that are very different from the S&P 500. Costs are very important. But there are management fees and there are valuation multiples. At the very least, I urge you to consider both.
