As opposed to all the recessions/crises before indexing where stocks didn't go down? Sharp people will scoop up great names at a discount just like always.
Sure, which also happens every time there's a big down move in the market. Actually per prospect theory it is often the best performers that get sold first:
Regardless, my point is smart stock pickers will come in and bid up companies that get oversold. No damage done unless you tried to time the market in your IRA and sold at the bottom. People who continue automatic purchases of broad indexes will be happy (at some point!) for the discount.
Many are index funds, but some are directly curated by the fund creator without mirroring any pre-existing index. Though they still function similarly to index funds in that they have low expense ratios, unlike traditional actively managed mutual funds with their exorbitant management fees.
