FYI: Over the past few decades, there has been a substantial shift from active to passive investment strategies. The shift has occurred as investors have become more aware of the persistent failure of active management, as demonstrated in the S&P Dow Jones biannual Indices Versus Active (SPIVA) reports.
A January 2019 Federal Reserve Bank of Boston study, “The Shift from Active to Passive Investing: Potential Risks to Financial Stability?”, found that “Passive funds made up 45% of the assets under management (AUM) in equity funds and 26% for bond funds at the end of 2017, whereas both shares were less than five% in 2005.”
Regards,
Ted
https://www.etf.com/sections/index-investor-corner/swedroe-index-investings-market-impact?nopaging=1
