How big index fund and ETF providers have increased their sway over publicly-traded companies while potentially discouraging competition. What can be done about it?
Topics covered include:
- How market share for assets under management has become increasingly concentrated with big fund complexes like Vanguard and BlackRock
- What is a fiduciary relationship and how do asset managers serve as fiduciaries
- Why do investors in index funds and ETFs have no input as to how fund sponsors vote on shareholder proposals
- What percentage of outstanding shares do Vanguard and BlackRock own of publicly traded companies like Apple, Target, or gun manufacturers
- How Vanguard and BlackRock use engagement and voting policies to influence publicly traded companies, particularly when it comes to climate risk and diversity
- How ownership by Vanguard and BlackRock in publicly-traded companies in the same industry could discourage competition.
- What can be done through regulation or through individual action to reduce Vanguard and BlackRock's influence
For more information on this episode click here.
Sponsors
Policygenius - save over 50% on life insurance
Wealthfront - get your first $5,000 managed for free for life
Show Notes
What BlackRock, Vanguard and State Street Are Doing to the Economy by Farhad Manjoo—The New York Times
Investment Company Fact Book
World's Top Asset Management Firms—ADV Rating
West Virginia Treasury Drops BlackRock Over Stance on Climate Risk by Alicia McElhaney—Institutional Investor
How an Organized Republican Effort Punishes Companies for Climate Action by David Gelles and Hiroko Tabuchi—The New York Times
The Future of Corporate Governance Part I: The Problem of Twelve by John C. Coates, IV
Larry Fink’s 2022 Letter to CEOs: The Power of Capitalism
BlackRock's gun money by Dan Primack—Axios
Investment Stewardship 2021 Annual Report—Vanguard
Proxy Voting Policy for U.S. Portfolio Companies
Anticompetitive Effects of Common Ownership by José Azar, Martin C. Schmalz, and Isabel Tecu
Common Ownership and Industry Profitability: A Crossindustry View by Haifeng Wang, Jan-Carl Plagge, James Rowley, Roger A Aliaga-Diaz
How ESG investing came to a reckoning by Harriet Agnew, Adrienne Klasa and Simon Mundy—Financial Times
Related Episodes
148: Is Your Financial Advisor Loyal to You?
234: Index But Don’t Herd
340: Climate Change, ESG, and What Should Investors Do?
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
