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Mark Gilbert

Devouring Capitalism

Low-cost, index-tracking funds spell evolution -- not revolution.
Photographer: MLADEN ANTONOV/AFP/Getty Images

Do low-cost index-tracking funds really threaten to turn us all into communists?

A year ago, Sanford C. Bernstein & Co. warned that "passive investing is worse than Marxism." Today, the most-read story on Bloomberg is about Paul Singer warning that "passive investing is in danger of devouring capitalism."