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(Extra 5%) In the past decade, nearly $1.36 trillion in net flows were added to U.S. equity mutual funds and exchange-traded funds that mimic market

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(Extra 5%) In the past decade, nearly $1.36 trillion in net flows were added to U.S. equity mutual funds and exchange-traded funds that mimic market indexes, while $1.32 trillion fled higher-costing actively managed counterparts. Indexing giants such as BlackRock Inc., Vanguard Group and State Street Corp. now wield considerable power over corporate America and can cast pivotal votes that determine everything from who sits ard to how executives deal with issues ranging from climate change to pay equity. What are potential issues if passively managed funds become a dominant player in the financial market? List at least two issues. Express your argument in no more than 3 sentences

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