> Take Vanguard or Fidelity for example, they "control" a vast amount of money, but all they do with it is track indices on behalf of their retail customers.
Control or power doesn't disappear, any more than mass-energy does - if Vanguard or Fidelity aren't controlling the billions in index funds, then who is?
The answer should be obvious: whomever decides who to include in an index. This is part of the reason public companies are so eager to be listed in the Dow or Nasdaq or S&P 500; they know that listing guarantees demand from the many index trackers etc.
> Control or power doesn't disappear, any more than mass-energy does - if Vanguard or Fidelity aren't controlling the billions in index funds, then who is?
Mutual fund investors no more affect the decision of the fund managers - and certainly not the indices' management - than does a random voter in even a swing state.
Control or power doesn't disappear, any more than mass-energy does - if Vanguard or Fidelity aren't controlling the billions in index funds, then who is?
The answer should be obvious: whomever decides who to include in an index. This is part of the reason public companies are so eager to be listed in the Dow or Nasdaq or S&P 500; they know that listing guarantees demand from the many index trackers etc.