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Passive fund ownership of US stocks overtakes active for first time

Around 16 per cent of US stocks are held by index trackers and ETFs vs 14 per cent by actively managed funds

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Passively managed index funds have overtaken actively managed funds’ ownership of the US stock market for the first time, data show.

Passive funds accounted for 16 per cent of US stock market capitalisation at the end of 2021, surpassing the 14 per cent held by active funds, according to the Investment Company Institute, an industry body.

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