Rethinking Passive Investing: The Active Role of ETFs

This chapter explores the complexities of managing exchange-traded funds (ETFs) and index investing, advocating for the term 'index' over 'passive' due to the active nature of investment management required. It discusses how ETFs democratize market access and facilitate engagement for a wider audience while emphasizing the importance of product engineering and technological platforms in maintaining market quality. The chapter also highlights the significance of BlackRock's Aladdin system in transforming risk management and enhancing investment strategies across the industry.