Are ETFs Killing Future Stock Market Returns?
The rise of slow-and-steady investing has been momentous. But too much of a good thing can be a problem.
Source: Getty Images
This article is for subscribers only.
Subscribe to Trillions on Apple Podcasts
Subscribe to Trillions on Spotify
The rise of index funds, exchange-traded funds and passive investing in recent years has been nothing short of momentous, as investors across the US and around the world learn to rely on slow-and-steady returns. But there’s been rising concern over the potential side effects of this sea change in the way stocks are bought and sold. The new worry is that, because index funds (and ETFs) are so cheap and easy to access, more people will use them—and this will push down future expected returns for everyone.