Stock Market Is as Active as Before $11 Trillion Index Invasion
- Academics say market ‘activeness’ barely changed in 20 years
- Investors deploy index funds as part of larger portfolios
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Wednesday, July 28, 2021.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Wall Street’s passive revolution is turning out to be anything but, with active investing alive and kicking in even the sleepiest corners of the ETF world, according to the latest research.
For all the trillions poured into low-cost index-tracking funds, the U.S. equity market overall is just as active as the halcyon days of the conventional stock picker two decades ago, academics at Cornell University and the University of Technology Sydney have found.