Tue, December 10, 2024
Mon, December 9, 2024
Sun, December 8, 2024
[ Sun, Dec 08th 2024 ] - Seeking Alpha
ECAT: 21% Yield On ESG Stocks
Sat, December 7, 2024
Fri, December 6, 2024
[ Fri, Dec 06th 2024 ] - Forbes
3 Long-Term Stocks To Buy In 2025
[ Fri, Dec 06th 2024 ] - Zawya
XTB harnesses its bet on AI-Tech
Thu, December 5, 2024
Wed, December 4, 2024
Tue, December 3, 2024

A $500 Billion Haul Reignites Passive Controversy on Wall Street


//stocks-investing.news-articles.net/content/202 .. eignites-passive-controversy-on-wall-street.html
Published in Stocks and Investing on Friday, December 6th 2024 at 9:31 GMT by bnnbloomberg   Print publication without navigation

  • The passive-investing juggernaut is picking up speed
  • and it's stirring up fresh angst about the dangers posed by the index-tracking boom across Wall Street.

The article from BNN Bloomberg discusses the significant growth in passive investing, particularly through ETFs, which has led to a $500 billion influx into these funds in 2023. This surge has reignited debates about the implications of passive investing on Wall Street. Critics argue that the dominance of passive strategies could distort market prices, reduce market efficiency, and potentially lead to asset bubbles due to the lack of active price discovery. Proponents, however, highlight the benefits like lower costs, diversification, and the democratization of investing. The article also touches on how major asset managers like BlackRock and Vanguard are benefiting from this trend, while traditional active managers face challenges in justifying their higher fees. Additionally, there's mention of regulatory concerns about the concentration of voting power in the hands of a few large index fund providers, which could influence corporate governance.

Read the Full bnnbloomberg Article at:
[ https://www.bnnbloomberg.ca/investing/etfs/2024/12/06/a-500-billion-haul-reignites-passive-controversy-on-wall-street/ ]

Publication Contributing Sources