The Spotlight Turns on Index Providers
They have quietly acquired huge powers--and responsibilities.
Into the Glare
Note: Morningstar is itself an index provider, although mentioned only in passing by the referenced paper.
Index funds have been heavily criticized. This column has documented several such attacks. Index funds warp equity prices by rewarding securities that are held by the major indexes and penalizing those that are not. They have inflated a stock market bubble. They are slothful (or even damaging) corporate stewards.
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.