That may be changing, thanks to concerns about index funds expressed across the partisan spectrum. Because the makeup of the 500 index changes only rarely, the 500 fund and funds like it make few purchases or sales. So it's not surprising that passively managed index funds have outrun active funds for years. (How many owners of Vanguard's S&P 500 index fund can name even 10 stocks in the index?) That said, the concentration of financial power in passive investment funds has raised concerns in Washington, and not only among conservatives.

Source: Los Angeles Times July 18, 2024 14:09 UTC