Warnings that index funds have broken the stock market all imply a threshold: a share of the market at which price discovery fails. Nobody making the argument names it. Owen Lamont, writing in the Financial Analysts Journal, argues that no such number exists short of complete passive ownership, and that what actually determines whether prices stay informative is who is left doing the trading. His case, the strongest peer-reviewed research against it, and what the performance
Every year, some active fund families respond to the SPIVA scorecard with their own numbers — and those numbers always look better. They choose the start dates, benchmarks, and fee treatments that flatter them most. Here's how to see through it, and the one test that exposes what fund family marketing routinely hides.
Robin Powell
Mar 66 min read
SUBSCRIBE
Simply provide your email address to receive our regular update.
