I can't find the article, but recently I read something about concerns that companies like Vanguard may have trouble properly diversifying their index funds. This was due to the concern that companies like Vanguard hold too great a share of the market. It's my understanding that, traditionally, index funds were exempt from these rules, I assume because index funds don't try to beat the market but rather just to replicate it. The article implied that things might be changing and that Vanguard may have trouble properly diversifying simply because regulations would prevent them from holding such (relatively) large shares of the market.
Still can't find the article, but I believe the topic had something to do with "concentrated power". Anyway, could someone please set me straight on this issue, and more importantly, please let me know if I should be concerned that my Vanguard Index Funds may not be able to reflect the market in the future as well as they should.
Still can't find the article, but I believe the topic had something to do with "concentrated power". Anyway, could someone please set me straight on this issue, and more importantly, please let me know if I should be concerned that my Vanguard Index Funds may not be able to reflect the market in the future as well as they should.
Statistics: Posted by bobsmith — Thu Aug 22, 2024 6:47 am — Replies 13 — Views 1164