FYI: Over the past few years, a group of economists and law professors has made a provocative argument: Large index funds discourage competition among the companies they own, hurting consumers. If this is true, this "common ownership" problem suggests policymakers should engage in a hugely disruptive response, by either curbing the size of asset managers that invest in competing companies or limiting their ability to diversify within the same industry. Recently, these ideas have jumped from the academic to the policy realm. In fact, the Federal Trade Commission recently held a daylong hearing and requested public comment on proposed remedies to this problem.
Regards,
Ted
https://www.morningstar.com/articles/918357/are-large-passive-funds-discouraging-competition.html
