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If Index Funds Were Politically Motivated, They Wouldn’t Be Index Funds

As index funds rise in prominence, so grows the belief that they’ll use the size of their buying to influence companies in politicized fashion. Except if they did as the critics imagine, they wouldn’t be index funds. Furthermore, the low – and falling – costs of index funds are all the information we need to know that passive investment options aren’t suddenly being managed in active fashion.

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