FYI: This is the era of passive investing, but while the strategy has been incredibly favored and successful for years, the U.S. stock market in every major way remains driven by the views of active managers and the moves of individual securities.
Passive investments have been a major growth area for Wall Street, with exchange-traded funds in particular seeing heavy adoption, but they remain a minority part of the market, dwarfed in size by their traditional stock picking peers.
While index products have been eroding the market share of active ones, “the greater market is still active,” Credit Suisse wrote, noting the massive presence of other investment vehicles, such as hedge funds, separately managed accounts, pensions, and so forth.
Regards,
Ted
http://www.marketwatch.com/story/passive-investments-are-hot-but-remain-a-small-slice-of-the-stock-market-2017-10-16/print
