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Passive Stock Investors Are Bigger Market Force Than Thought, Study Says

  • Swelled by direct indexers, passive stake is double estimates
  • Authors measured trading volumes on index rebalancing days

People on Wall Street console themselves over the relentless march of passive by downplaying its scale. Sure, index funds have ballooned in size, but most estimates put passive ownership of the US stock market at around 15% -- not enough to get worked up about.

But what if it’s actually double that?