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Elon Musk, Cathie Wood Say Passive Funds Have Gone Too Far

  • Conversation on Twitter touts benefits of active portfolios
  • Wider debate is raging about indexing versus stock picking
Elon Musk

Elon Musk

Photographer: Jim Watson/AFP/Getty Images

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Elon Musk and Cathie Wood criticized passive investing in a Twitter thread, weighing in on a long-running Wall Street debate about the growing power of index funds.

Their discussion was sparked by venture capitalist Marc Andreessen, who said firms like BlackRock Inc. have outsized voices in many corporations because of the voting power attached to their huge passive vehicles.