Investor Economics Insight March 2021

Global Indexing Enters a New Phase
Indexing is not new. Nor is it the rapid growth of passive strategies compared to active funds in global markets. As has happened with many other trends, however, the shift toward index products has accelerated since COVID-19 hit the markets. Reasons abound and range from deep changes in distribution channels and rampant product proliferation to the advent of younger generations to the investment scene.

The March Insight research feature examines the global and, particularly, the domestic funds industry, with a strong emphasis on the expansion of passive strategies. The Trendlines article probes into the pricing pressures experienced across product structures on both ETFs and mutual funds in different management styles.