[noirbot]

I'd assume there's some stability to knowing that X% of the market is passively invested in indexes. It could give active traders some extra edge, since it would make things more predictable? If everyone's an active trader, it's everyone competing against everyone else, where everyone is a live actor. On the other extreme, if you're the only active trader, and literally everyone else is in indexes, you'd be the only person actually moving the market in response to news, and could use that to your advantage.

Obviously we're not in either state, but presumably the closer we get to the latter state, the game gets a little easier for the active traders, not that that necessarily means they'll get a free "win"

[whatshisface]

>I'd assume there's some stability to knowing that X% of the market is passively invested in indexes.

Indexes holding shares have no influence on the price. The price only changes when traders trade.