Over decades, index funds have delivered superior returns and surged in popularity. But some claim the rise of passive investing has come at the cost of less competitive markets and inflated prices for consumers. We look at the evidence that common stock ownership might harm economic efficiency.
And in today’s Dumb Question of the Week: How high would bond yields have to go for you to sell your stocks?
- How Index Funds May Hurt the Economy – The Atlantic
- Anti-Competitive Effects of Common Ownership
- The Perils of Common Ownership: The Flooding Phenomenon
- Martin Schmalz: How passive funds prevent competition
- Index Investing and Common Ownership Theories | BlackRock