This week, Kyle talks to Rob Arnott, founder of Research Affiliates, about a new way of owning the market passively by backing underdog stocks that have been kicked out of big indices, such as the S&P 500. The duo discuss the potential flaws in how most index funds and ETFs track the market, and Arnott gives his views on whether valuations have become too extreme for US technology stocks.

On The Money is an interactive investor (ii) podcast. For more investment news and ideas, visit www.ii.co.uk/stock-market-news.

Kyle Caldwell is Collectives Editor at interactive investor.

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Is this a smarter way to invest in stock markets?

On The Money

Is this a smarter way to invest in stock markets?