Maybe it’s because I don’t know something, but I’m not so surprised. Belief that Vanguard and co would have no large effects on markets seems quite expedient for Vanguard. Right now, when people talk about the real world effects of index funds, it’s all very negative, so if he can find a way to say “no there aren’t any effects”, he’s going to want to.
Negative effect I’ve heard claimed: Empirical evidence of Index Funds getting involved in corporate governance to reduce competition across the whole market (very anti-consumer), negative effect I (uninformed) am considering claiming: Index Funds are kinda dumb money that goes to the incumbency, instead of to domain-expert investment firms, nor to new challengers.
Regardless of whether they’re really bad or not, it is damned scary to see that the largest shareholders of most large companies now are the same three enormous organizations that know absolutely nothing about them.
Maybe it’s because I don’t know something, but I’m not so surprised. Belief that Vanguard and co would have no large effects on markets seems quite expedient for Vanguard. Right now, when people talk about the real world effects of index funds, it’s all very negative, so if he can find a way to say “no there aren’t any effects”, he’s going to want to.
Negative effect I’ve heard claimed: Empirical evidence of Index Funds getting involved in corporate governance to reduce competition across the whole market (very anti-consumer), negative effect I (uninformed) am considering claiming: Index Funds are kinda dumb money that goes to the incumbency, instead of to domain-expert investment firms, nor to new challengers.
Regardless of whether they’re really bad or not, it is damned scary to see that the largest shareholders of most large companies now are the same three enormous organizations that know absolutely nothing about them.