Tracing the Roots of Passive Investing Back to Medieval Italy

The video explores the evolution of financial products, starting with the Commenda contracts in medieval Italy, which allowed merchants to finance their journeys through a system of passive and active investors. These contracts are likened to modern ETFs due to their diversification and secondary market. The video also discusses the Equal Weight Index Fund from 18th century Holland, which offered a diversified bond portfolio in response to a financial crisis. The fund's low costs and liquidity issues are highlighted, drawing parallels to modern financial products.

What was the Commenda contract and how was it used by medieval merchants?

How did the passive investor benefit from the Commenda contract?

What was the significance of the book published in 1178 regarding commended contracts?

Describe the Unity Creates Strength fund and its purpose.

What were the liquidity issues associated with the Unity Creates Strength fund?