This "problem" isn't confined to ETFs - its relevant to any fund (mutual fund, ETF, etc..) that tracks an index. ETFs only have about $2 trillion under manageme

This "problem" isn't confined to ETFs - its relevant to any fund (mutual fund, ETF, etc..) that tracks an index. ETFs only have about $2 trillion under management. Compare this with maybe $20 trillion under management in the mutual fund space. Though, not all mutual funds are passive index funds. Movement of stocks in and out of indices doesn't really create an issue. But it does setup an opportunity for arbitrageurs.