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The article is talking more about the declining average load due to passive funds. If the average load goes down, I'm saying that those fees are probably just m

• nostrademons 11y ago
  It moves into the price discovery mechanism of the market. More people in passive funds => fewer people doing active research on companies => greater likelihood that the market price of a security doesn't reflect the underlying fundamentals of the business => arbitrage opportunities for active traders, as chollida1 pointed out. People will still get phenomenally rich in the stock market, wealth inequality will still increase. The difference is that people have to work for it now, building up their own information advantage, rather than being able to siphon off large fees simply because they went to a good school and talked a fellow alum into hiring them. This is a plus in my book.