To add to the sibling comment, not only do they result in huge amounts of capital being spread evenly across an index instead of efficiently to deserving compan

To add to the sibling comment, not only do they result in huge amounts of capital being spread evenly across an index instead of efficiently to deserving companies, but they inflate the entire equities market, even when it's overheated or drowning in debt, as a consequence of the "buy and hold forever" mentality. I think we will see result in larger bull runs and larger eventual bear markets (while it will take a bigger dip to get people to sell, there will be a ton of relative household net worth available to sell when there is a strong enough impetus). Instead of laws enabling ETF's and long term capital gains discounts, I'd rather have a government with a less inflationary monetary policy, where the key to wealth for the average person is saving.