Andrew does a great job of dispelling this myth in this article; but don't just take his word for it; I've included links to articles by US News and The Financial Times highlighting the same fundamental differences between index funds and the 'sub prime' market...
"Wall Street analysts have predicted 100 of the past 3 market crashes."
https://assetbuilder.com/knowledge-center/articles/why-the-big-shorts-michael-burry-is-wrong-about-index-funds
"the prospect of people being unable to find willing buyers for mainstream stocks is simply unrealistic. Market makers aside, Burry’s nightmare scenario seems to also require a situation where everyone is selling at once. Long-term investors should never give way to their emotions and surrender to such panics in the first place."
https://money.usnews.com/investing/funds/articles/do-index-funds-etfs-quietly-pose-a-systemic-risk-michael-burry-thinks-so
"when a violent sell-off came this year, triggered by the coronavirus pandemic, equity and bond ETFs arguably came through with strengthened credentials — an experience that promises to further embed them into the workings of the capital markets."
https://www.ft.com/content/e71a193f-0f35-45d9-ac59-d7ad00d52945
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