[afterstep13]

Index investing is passive investing.

We need investors who actively invest, by evaluating the companies, so that more money goes to good companies and less money goes to bad companies. The index represents the current batch of the top 500 good companies in recent times as decided by the active investors. The index is re-balanced as the preferences of the active investors change.

So, if there were no active investing, then investing would be completely pointless.