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No? ETF inflows from passive, market-index funds are evenly distributed across the market, weighted by market cap. They don't concentrate to only the big comp
by loeg 1y ago
No? ETF inflows from passive, market-index funds are evenly distributed across the market, weighted by market cap. They don't concentrate to only the big companies.
- plantain 1y agoInflows are not evenly distributed across the market. The S&P500 ETF's dominate.
- loeg 1y agoThe S&P500 represents 87% of the US market (~$54 of 63T). Inflows to S&P500 funds are evenly distributed among that 87% (by market cap). I think concerns about market concentration are usually expressed about, e.g., the Mag 7 being 31% of the US market (~$19 / 63T) moreso than the next biggest 493 stocks. S&P 500 inflows don't overweight the Mag 7 relative to any other S&P 500 component.