Setting the record straight: Truths about indexing

21 June 2018 | Portfolio construction



Indexing has grown substantially during the past several decades, leading to dramatic changes in the way people invest. Despite indexing's benefits, its growth has led to criticism about its potential impact on the capital markets. Vanguard believes this criticism is largely unfounded. In our paper, we:

  • Quantify the benefits of indexing.
  • Clarify the definition of indexing.
  • Analyse the effects of indexing on market volatility, liquidity and active management.

 Read the paper in full

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This article is directed at professional investors and should not be distributed to, or relied upon by, retail investors.

This material is for professional investors as defined under the MiFID II Directive only. In Switzerland for institutional investors only. Not for public distribution.

This material was produced by The Vanguard Group, Inc. It is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.

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