>With all these people passively investing, are we going to see reduced competition within industries... I read an article a while back, wish I could find it.

>With all these people passively investing, are we going to see reduced competition within industries... I read an article a while back, wish I could find it. It was about how CEO compensation is often tied to absolute performance as opposed to performance relative to the whole industry and how passive management actually prefers this so I'd say yes. >How good is price setting if there are less and less actively managed funds? Are there new inefficiencies that are created by all this passive investing? Well Shiller PE is getting up there. I think this is super interesting because in our next correction or perhaps even now, as we move to an increasing rate environment, we will get to see some analytical minds actually beating the market. It's gonna be interesting.