Advisor Insights

What Is an Index?

Ben Johnson, CFA

In February, Robert J. Jackson Jr., a member of the U.S. Securities and Exchange Commission, and Steven Davidoff Solomon, a law professor at the University of California, Berkeley, published an op-ed in The New York Times with the title, “What’s Really in Your Index Fund?” They wrote:

“But [here] is the problem: The indexes…may not be as neutral as they seem. The firms that devise these indexes face little regulatory scrutiny and can face significant conflicts of interest, which have the potential to harm American investors.”

Ben Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.