Dmytro Kharkov

If all investors index, no single managers form index, Michael Green argues

If all investors index, no single managers form index, Michael Green argues
Indexing impacts single manager roles

Michael Green, chief strategist and portfolio manager at Simplify Asset Management, discusses the structural implications of full market indexing.

He points out that when all investors move to index strategies, there are no active single managers left to create the index itself. Green acknowledges the discussion on index versus single manager selection, noting that using custom or aggregate indices can skew performance measurement.

Green previously highlighted how the rise of passive investing challenges market efficiency, referencing the Grossman-Stiglitz framework in a recent analysis. He has also examined the impact of rising interest rates on the speed at which funds are deployed in his commentary on velocity of money. Both topics have informed his broader views on structural market changes.

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