The index investing revolution: How passive strategies are reshaping markets | Partner Content
The rapid growth of passive strategies, i.e. index-based investing, has been extraordinary.
In 2023, passive fund assets globally surpassed active fund assets1, driven by the proliferation of exchange-traded funds (ETFs), whose diversification, ease of access and cost efficiency appealed to both the growing retail investor base and institutional investors.
ETFs have democratised access to broad markets, much like stocks. Initially marketed to retail investors for their low fees, ETFs are now being embraced by institutions managing large, diversified portfolios.
While the shift started in equity markets, it has spread to other asset classes, with fixed income ETFs becoming increasingly popular.
The increasing availability of bond…
