Passively managed index funds now hold over 30 of US equity fund assets; this shift raises
fundamental questions about monitoring and governance. We show that, relative to active …

We develop a framework to theoretically and empirically analyze how investors compete
with each other in financial markets. In the classic view that markets are fiercely competitive …

We investigate the new reality of exchange-traded funds (ETFs). We show that most ETFs
are active investments in form (designed to generate alpha) or function (serve as building …

Each time a stock gets added to or dropped from an index, we ask:“How much money would
have to be tracking that index to explain the huge spike in rebalancing volume we observe …

We develop a benchmark model to study the equilibrium consequences of indexing in a
standard rational expectations setting. Individuals incur costs to participate in financial …

ABSTRACT Research Question/Issue The prominent ownership position of the Big Three
asset management firms (ie, BlackRock, Vanguard, and State Street Global Advisors) in …

This paper discusses empirical methods that rely on Russell 1000/2000 index assignments
for identification. Using simulated data, the paper illustrates why the varying approaches …

A recent literature uses the annual reconstitution of the Russell 1000 and 2000 Indexes as a
source of seemingly exogenous variation in institutional ownership to study the effect of …

We study the impact of index investing on firm performance by examining the link between
commodity indices and firms that use index commodities. Around 2004, commodity index …

We use the 2015 Chinese stock market crash to study the effects of government stock
purchases. The Chinese government purchased stocks to stabilize the markets through state …