From Index Funds to Structured DeFi Products with Index Coop
An index fund is a portfolio of stocks or bonds designed to mimic the structure and functioning of a financial market index.
Jack Bogle, founder of the Vanguard Group is essentially the savior of a great many investors out there who save and invest for their retirement. Warren Buffett himself called Bogle a hero and championed his philosophy of passive investing. Buffett told everyone including his children and most investors, to chuck their money in passive index funds and not do anything else.
In the years since the index money has grown, it forms a large part of the investment sector. They have grown beyond the total assets stored in actively managed funds for the first time in the fall of 2019. To illustrate the success of the index investment movement one can look at the Cumulative US Equity Fund Flows as shown below.
What is the reason for this growth? Index funds provide effective, affordable access to investments for millions of individual investors who use these funds to finance their retirement and achieve other personal financial goals. Instead of trying to pick the best one, which is hard to predict, you can buy a basket of carefully selected tokens by Index Coop, giving you a higher chance of earning better returns and lower fees.
Index Coop brings the principles of passive investing to crypto assets into a single ERC 20 token that can be purchased by anyone who doesn’t want to worry about the complexity of actively managing a portfolio. Imagine being able to vote on how Vanguard handles its Index Funds. Impossible, Right? Not so for Index Coop!
In the traditional financial world, ETFs and index products are the most widely traded instruments, and companies such as BlackRock ($7.4T AUM) & Vanguard ($6.2T AUM) are the largest asset managers in the world with trillions of assets under management. Currently, we think there is a clear opportunity for the Index Coop, as the first mover, to grow and scale into being a leading provider of crypto index primitives.
Index Coop creates and maintains the world’s best crypto index products. It is important to remember that Index Coop investment vehicles are represented as standard, fully compliant with standard ERC-20 tokens, which means that they are free to sell in the same way as other Ethereum-based Tokens.
All index products are always fully collateralized.
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