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
The hidden costs of passive investing can add hundreds of basis points annually beyond headline fees. New research reveals how index funds face invisible expenses from rebalancing friction, tracking errors, and market impact that never appear on fund fact sheets. UK investors may pay far more than the advertised 0.1% management charge.
TEBI
Jul 14, 202511 min read
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