Why Passive Investing Is Worse for Society Than Marxism

The video discusses a report by Sanford Bernstein that has stirred debate in the financial industry. It highlights the shift from active to passive investment, noting a $2 trillion swing over three years. The report argues for the social role of active management, suggesting that regulators may overly favor index funds. The discussion also points out that not all passive investments are truly passive, with ETFs often actively traded. The broader trend is seen as a shift from high-cost to low-cost investments, with active management still holding significant assets.

What is the significance of the $2 trillion swing mentioned in the report?

In what ways does the report suggest that not all passive investments are truly passive?