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
Buying an ESG fund is widely assumed to change corporate behaviour. New research from Drexel University and the University of Texas at Dallas finds that most ESG funds have little measurable impact — but a committed minority, with a genuine financial incentive to engage, drives real improvements in the companies they hold. The difference lies not in what a fund owns but in how it behaves as an owner.
Robin Powell
Jun 237 min read
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