FYI: An AllianceBernstein research note in 2016 that described ETFs as “worse than Marxism”, given that communists attempted to allocate capital efficiently, caused a major backlash from the passive funds industry, however, the stark comment may prove to be correct after all.
The dramatic increase in ETF usage since the Global Financial Crisis has been well documented. Since 2008, assets in ETFs have risen from $716bn to $5.4trn, as at April.
The majority of these flows have gone into US-listed ETFs, which have $3.8trn assets under management, and in particular, S&P 500 products. One stat which documents this rise is passive US equity funds have equalled their active counterparts at $4.3trn, according to Morningstar.
Regards,
Ted
https://www.etfstream.com/feature/7952_etf-insight-the-rise-of-etfs-has-an-unintended-consequence/
