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
Leveraged ETFs promise double or triple the market's daily return. What they actually deliver, according to Morningstar's latest research, is high fees, high volatility and a strong tendency to lose money for the investors who hold them.
Robin Powell
Feb 21, 20254 min read
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