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the claim
Index funds lose value during stock market downturns.
the verdict
INSUFFICIENT LEANING
Recorded sources
4 sources for · 0 against
Is it true that Index funds lose value during stock market downturns?
Unclear. The retrieved items only partially bear on the claim: two papers report a negative correlation between index fund flows and S&P returns, and two studies document that broad market indices (South African sector indices, India's Nifty 50) can suffer sharp losses during downturns. None directly measures whether index funds lose value in market downturns.
Verdict: PARTIAL LEAN · 4 sources for, 0 against · Last checked
Evidence for · 4
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Massa, M. & Goetzmann, W. N. (1998). Index Funds and Stock Market Growth. doi.org. https://doi.org/10.2139/ssrn.125470
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More for · 3
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Goetzmann, W. N. & Massa, M. (1999). Index Funds and Stock Market Growth. nber.org. https://www.nber.org/papers/w7033
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Jakata, O. & Chikobvu, D. (2025). Modelling Financial Risk in the South African Stock Market: An Application of the Generalised Extreme Value Distribution (GEVD). doi.org. https://doi.org/10.33119/erfin.2025.10.2.1
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Sharma, S., Gupta, C., Malhotra, R., Johari, A., Sayal, A., & Gupta, S. K. (2026). Volatility and Monthly Patterns in the Indian Stock Market: An Empirical Study of the Nifty 50. doi.org. https://doi.org/10.1109/ICIPTM69057.2026.11465824
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