Yet, there has been a steady shift away from these actively managed funds towards passive or index funds. In the United States, the total value of actively managed funds was surpassed by passive funds. Globally, passive funds crossed $10 trillion, a five-fold increase from $2tn in 2007. Steering global capital flowsWith trillions of dollars migrating to passive funds, the role of index providers has been transformed. We traced this change in a recent paper: In the past, index providers only supplied information to financial markets.

Source: Dhaka Tribune February 26, 2020 13:41 UTC