, Columnist
Saying There's a Bubble in ETFs Makes Little Sense
The shift to low-cost investment funds represents an enormous wealth transfer to investors in the form of lower fees. This is a huge win for the investor class.
Overblown worries.
Photographer: Bryan R. Smith/AFP/BloombergThis article is for subscribers only.
The explosive growth in exchange-traded and index funds is causing the money management industry to freak out. Some are worried these vehicles will destabilize markets. Others are concerned fundamental analysis is no longer being rewarded. Another group feel the rise in passive investing could be hurting economic competition and growth.
You can hardly go a week without someone claiming we are at “peak passive” or in the middle of an “ETF bubble.”