Are ETFs Killing Future Stock Market Returns?
Trillions
Is the Change in Ownership of a Stock a Big Deal?
Tanger Outlets used to have 55 or 60% of its shares owned by index funds and ETFs. Now passive owns it from active over like two years and all of a sudden passive on 60%. I called the IR woman and she said, "We don't really care who owns us" Warren Buffett buys huge stakes in the three or four largest airlines in the US but he doesn't put himself on the board there. He gets less actively engaged with companies where he also buys a competition. And that's exactly what economic theory would predict. You simply don't have an incentive to engage strongly with one company with part of their success coming at the expense of another company you own as well
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