I just had the strangest feeling of inversion reading this. I'm a committed low-cost index fund investor and would have thought I'd be quite happy with this idea. However, it's like I am seeing this from the perspective of an active fund manger for the first time.
Do you think this could skew the utility of scorecards? Could a person place a big portion of their funds in a ETF (say VAS) and mirror the ASX 300 benchmark and, with one or two good picks, give the impression of achieving out-sized alpha? I think this is the "closet indexing " argument.
Also, if ASX 300 is our benchmark, is it fair to allow overseas markets (via NDQ for example) into that race?