The Indexing Boom Has Saved S&P Investors a Cool $357 Billion
- S&P Dow Jones crunches data to show how indexing has cut costs
- Figure would be much higher if all gauges were included
Photographer: Sukanya Sitthikongsak/Moment/Getty Images
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It won’t silence critics of the indexing boom, but S&P Dow Jones Indices reckons passive investing has saved traders a tidy $357 billion over the past 25 years.
The firm estimates that managers with assets linked to the S&P 500, 400 and 600 indexes have had their expenses cut big time -- helping returns in a world where stock pickers keep failing to outperform benchmarks.