Vanguard, BlackRock Lead Rise of Passive Ownership

The video discusses the ownership structure of U.S. companies, focusing on the role of passive funds like BlackRock and Vanguard, which own a significant portion of S&P 500 stocks. It explores the impact of these funds on corporate governance, their engagement with companies, and their voting behavior. The video also examines sector-specific ownership variations and the potential future growth of passive fund ownership.

What percentage of S&P 500 stocks do passive funds like BlackRock and Vanguard collectively own?

• 5%

• 13%

• 50%

• 25%

How do passive funds like BlackRock and Vanguard engage with corporate governance?

• They micromanage daily operations.

• They avoid any involvement in governance.

• They focus on short-term profits.

• They promote long-term value and board independence.

What is the typical voting behavior of passive funds regarding activist proposals?

• They support activists 25% to 50% of the time.

• They always support activists.

• They never support activists.

• They support activists 75% of the time.

In which sectors do passive funds tend to own more than 13% due to the demand for yield?

• Technology and Healthcare

• Utilities and REITs

• Consumer Goods and Services

• Energy and Materials

What is the potential future ownership percentage of Apple by Vanguard, according to the discussion?

• 50%

• 10%

• 20%

• 30%