> The fraction of holdings in these index funds is high, but matches the fraction that was always just thrown into the "balanced random junk" segments of portf

> The fraction of holdings in these index funds is high, but matches the fraction that was always just thrown into the "balanced random junk" segments of portfolios. Players who want to make focused bets on particular securities or industries will continue to do so, in exactly the same proportion they did before. 30 years ago investing in Index style mutual funds was pretty uncommon. 50 years ago Index funds didn't even exist, and you'd have to have significant wealth to own hundreds or thousands of individual stocks (especially anywhere close to market weighted). We are seeing a fundamental shift in how people invest, though whether or not that leads to a fundamentally different outcome is unknown.