Thoughts on Index Funds Collapsing?


Im curious to hear what the take is. Some experts say that index funds may collapse, however I generally dont understand how this would happen, as they are usually weighted with the top 30-50% in the 10 biggest holdings (blue chips like amazon, google, apple, etc). I am a huge fan of VGT, VTI, VOO, etc and have been doing indexes since early 20s (decade). A few friends of mine are questioning the small cap stocks in those, as they believe indexes are over diversified and would rather see someone just buy the top 5-15 stocks in a sector or market, and roll with that instead of indexes that include those, as well as others (sometimes many others). Thoughts? Warren buffet was all about having a few stocks and holding, but he also is king of vanguard and they are index gods, so just wasnt sure.


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