4 ms·
Personally, I dont think price discovery is the biggest problem, but no overseight of the board of directors. Etf do not actively vote (as far as i understand).
by andi999 4y ago
Personally, I dont think price discovery is the biggest problem, but no overseight of the board of directors. Etf do not actively vote (as far as i understand). So this opens up for management and minority owners to run the comopany badly (or even plunder it). This is a negative effect in the long run though.
- matthewowen 4y agoBlackRock absolutely votes. The concern is arguably the _opposite_: in the index model ownership is concentrated in a few large institutions with very broad diversification, which creates some odd incentives. Matt Levine has a bunch of articles touching on this topic.
- cromka 4y agoBut ultimately the indices are incentivized by the underlying companies' growth, as to make their customers happy, thus it is in their best interest to take sane votes?
- kwere 4y agothey vote , usually against all stewardship bogus they like to signal [0]. [0] https://shareaction.org/news/new-data-shows-scant-improvement-in-fund-managers-voting-on-esg-resolutions https://shareaction.org/news/new-data-shows-scant-improvemen...