Right now, index funds account for 53% of the mutual fund market. These passive funds also control nearly 20% of the stock market.
That’s a massive increase from 1993 — when the same funds accounted for less than half a percent of the stock market and just 3.7% of the mutual fund market.
These funds, which make it easy to invest in massive indexes like the S&P 500 and Nasdaq Composite, have become so popular that some experts believe they may now be distorting market performance.
And that’s a serious cause for concern if you’re a stock investor.
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