During the last 15 years, passive strategies have attracted almost all net inflows in equity funds in Sweden, now accounting for 22 percent of all equity fund assets. Compared to other countries, this trend shows no signs of slowing. Passive investments have increased fee competition as well as given retail investors access to cheap and diversified market exposure. But is there a societal cost connected to the rise of indexation?
Paul Huebner, Assistant Professor at the Stockholm School of Economics & Swedish House of Finance, visited us to present the findings in a recent research paper on passive investing.
Read the report: How Competitive is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing
