The Rise of the Passive Investor

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In traditional or active investing, managers will buy cheap stocks to raise their price and then sell them off when they're worth more. But that dynamic is not at play with passive investors. Steve says, if a new stock enters the s and p 500, then passive investors have to buy it and keep it. So a stock can just keep going up or keep falling, without there being as many active investors to come in and push it back. The estimates are that passive investment maybe accounts for 30 % of the us Stock market,. somewhere around there.

Passively managed index funds have overtaken actively managed funds’ ownership of the US stock market for the first time and Brazil is cracking down on fake news on social media sites in the run-up to this October’s election. Plus, the FT’s Patrick McGee interviewed the chief executive of Epic games about his ambitions for the metaverse.

Mentioned in this podcast:

Passive fund ownership of US stocks overtakes active for first time

Social media platforms crack down on fake news ahead of Brazil election

Tim Sweeney: Epic will fight Apple and Google to keep the metaverse open

Travis Scott concert audio courtesy of Travis Scott YouTube channel

The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. The show’s editor is Jess Smith. Additional help by Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. The show’s theme song is by Metaphor Music. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley.

Read a transcript of this episode on FT.com

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