Index Funds Are Good Corporate Governors: Who Knew?
Chalk up another one for indexing.
Passive in Name
Among index funds' alleged sins, poor corporate governance is the most plausible.
Accusations that index funds distort the stock market's behavior do not convince, being merely the latest in a long line of excuses offered by lagging active managers. (Long before index funds prospered, active managers found ways to explain how the market erred in underpricing their holdings.)