Index funds' voting power under scrutiny

Author: | Published: 17 Oct 2018

Giving major voting power to entities that have virtually no financial stake in a company can have unwelcome results

An index fund is exactly what its name implies. It's a fund that holds all the securities included in a particular securities index, in the same relative proportions as their weightings in the index, and nothing else. Therefore, shares of the index fund move almost exactly as the index moves....