FYI: Who are the biggest winners of the shift to passive investing: investors who appreciate the cheap products, asset managers who sell them in bunches -- or the index firms that create the benchmarks backstopping it all?
It’s a serious question for the market, considering there are now more indexes than there are U.S. stocks. For years, the designers of these gauges have been raking in cash, primarily from licensing them to exchange-traded products and mutual funds.
But all that could be about to change.
Regards,
Ted
https://www.bloomberg.com/news/articles/2017-08-22/math-geeks-behind-etfs-scramble-to-defend-1-billion-index-boon
