The Rise of Passive Investing: From 2016 Warnings to Current Market Dominance
By
andsoitis
4mo ago· 1 min readenInsight
38/100
Stale
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Hard crust, hollow middle. Skim only.
Score38TypeanalysisSentimentneutral
Summary
The article discusses the massive shift from active to passive investing, with trillions of dollars moving into index-tracking funds. It references a 2016 research note comparing passive investing to Marxism and notes that passive vehicles now account for about 60% of net assets in American equity funds, with the trend continuing unabated.
Key quotes
· 3 pulledThe silent road to serfdom: why passive investing is worse than Marxism
Trillions of dollars of capital have poured from actively managed investment funds into those that simply track market indices
As much as 60% of net assets overseen by American equity funds are in such passive vehicles
A widely circulated working paper suggests so
