Per Wealthtrack, Index funds now account for 31% of equity fund investment, up from 5% in 1996. [Not necessarily a good thing for index fund investors. The more actively managed funds, the more analysts covering the more stocks, the more efficient the market price, the better for index fund investors, who benefit from the consensus of analysts without paying for their expenses. Theoretically, too many indexers, operating on autopilot, could promote market inefficiency and therefore undermine their own strategy. At 31%, hopefully that theoretical point of diminishing advantage for indexers remains far off, but....]
Posted on: Thu, 01 May 2014 17:34:54 +0000
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