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Impact of Passive Investing on Markets by alemayehu is a document available to read on EtoBox.
The paper examines the impact of passive investing on financial markets, highlighting its contribution to increased asset-price volatility, reduced liquidity, and greater market concentration, particularly among dominant stocks. It attributes the rise of passive investing to the growth of low-cost ETFs, the shift from defined benefit to defined contribution retirement plans, and the underperformance of active managers. The authors conclude that the increasing prevalence of passive investment strategies may
- Author
- alemayehu
- Language
- EN