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
Dimensional Fund Advisors aims its marketing at professionals and has long been associated with financial advisers. Yet a TEBI check found its funds listed on mainstream UK DIY platforms, many with ISA and SIPP eligibility. Here is where you can hold them, how they compare with Avantis, the firm set up by former Dimensional executives, and why a good planner still has a role.
Robin Powell
Sep 2610 min read
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