Tag: Index funds

Musk Blasts Public Markets, Says Indexing Has ‘Gone Too Far’ – Bloomberg

Wood and Musk also discussed how passive investing has punished stocks that are not in major indexes and unequally rewarded companies that are in key benchmarks. Their comments come as academic critics continue to lament that the passive-investing boom is distorting stock prices and causing extreme market moves. While Musk praised Vanguard Group Inc. founder Jack Bogle for bringing passive-investing…

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Do Index Funds Monitor?

Our paper, Do Index Funds Monitor? examines whether index funds monitor the firms in their portfolios and hold corporate managers accountable to the same extent that actively managed funds do. If a shareholder disagrees with firm management, she has three options. First, she can voice her opinion by voting against management proposals and in favor of shareholder proposals—including her own.…

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