FYI: The supposed death of the stock picker has become one of the dominant narratives of post-crisis finance.
As trillions of dollars have rushed into low maintenance, index-based products facilitated by exchange traded funds, it has become common place to hear traditional fund managers and analysts complain that this wall of cash is making it increasingly tricky for them to practice their craft. Some have warned of ETFs and their ilk being bubble machines that funnel vast sums of money into the same trades. Others have even argued that passive investment is resulting in a breakdown of the ability of financial markets to price assets and efficiently allocate capital.
Regards,
Ted
https://www.google.com/#q=Why+active+fund+managers+should+cheer+the+rise+of+ETFs+(Financial+Times)
