S&P 500

A growing trend of flows away from active investors to passive index trackers may damage the price discovery process and efficient capital allocation. My attention was recently drawn to this article in the Financial Times. It reports that $450bn was withdrawn from actively managed stock funds in 2024, with $1.7tn flowing into ETFs (though it is not clear what proportion of that ETF money has been allocated to passive, index tracking ETFs). It strikes me that this poses a real problem to the ...