Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
(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
(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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started