> Still way safer than any crypto, but I hope you see how that's just another cult at this point. Putting some numbers on the narrative will help the discussio

> Still way safer than any crypto, but I hope you see how that's just another cult at this point. Putting some numbers on the narrative will help the discussion. Jack Bogle asserted that index funds could "easily" account for 50% of the market and still not cause problems for index investors [1]. At 100%, he readily acknowledged it would be catastrophic; he also notes that the probability of 0% or 100% of the market accounted by index funds are zero. As of 2017 about 35% of the market is accounted for by index funds [2]. It took 10 years to reach that level from 15%, or on a simple-minded straight-line extrapolation about 2% per year. So if that trend held we're probably around 45% now. The closest Bogle has ever come to throwing out a maximum percentage accounting for the market is 75% but he backtracked on that [3]. So somewhere between 50-75% might exist a kind of tipping point. Contrast this with Michael Burry's thesis that passive indexing has already grossly distorted the market [4]. Those index funds which have stopped deploying more than say 80% of AUM into a distribution of daily dollar value traded among the securities within the indexes they mimic do indeed create the risk he talks about, IMHO. I'd like to hear someone refute that thesis, as well as explain how to independently identify how much of VTSAX's AUM are actually invested into the actual equities in their index. There are plenty of "index funds" that mimic price action instead of truly indexing, but I'm specifically interested in the old standbys that really do put a huge chunk of their AUM directly into the individual equities that make up the index. [1] https://www.yahoo.com/news/jack-bogle-envisions-chaos-catastrophe-markets-everyone-indexed-194610197.html https://www.yahoo.com/news/jack-bogle-envisions-chaos-catast... [2] https://www.columbiapacificwm.com/blog/insights/dimensional-fund-advisors-dfa/do-index-funds-distort-market-prices/ https://www.columbiapacificwm.com/blog/insights/dimensional-... [3] https://www.marketwatch.com/story/buffetts-hero-john-bogle-explains-why-index-investors-need-not-fear-a-stock-downturn-2017-05-15 https://www.marketwatch.com/story/buffetts-hero-john-bogle-e... [4] https://www.newtraderu.com/2022/11/06/michael-burrys-warning-for-the-index-fund-bubble/ https://www.newtraderu.com/2022/11/06/michael-burrys-warning...