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.
Want to learn more? Read the paper in full
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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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