Wall Street Rebels Warn of ‘Disastrous’ $11 Trillion Index Boom
- Fifty years since first fund, critics fear passive is too big
- Worries include ownership, price discovery and volatility
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To critics of the $11 trillion passive boom, active management is the original form of ethical investing -- and time is running out to save it from the indexing onslaught.
“On a societal basis, it’s potentially disastrous,” says Michael Green, chief strategist at Simplify Asset Management, referring to the passive frenzy. “There’s an impending crisis that requires people to make changes.”