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How trillion-dollar stock-market index funds are vulnerable to manipulation that ‘could harm American investors’
Dangers may lurk in index funds, a popular area of the stock market known for their recent and consistent record of outperformance against actively managed funds, according to experts. A recent op-ed in the New York Times cautions that passive index funds may be vulnerable to bias, and possibly manipulation, as interest in those funds has ballooned over the past decade. This is how Robert J. Jackson Jr., a member of the Securities and Exchange Commission, and Steven Davidoff Solomon, a professor at the University of California, Berkeley, Law School, put it in an article published Feb. 18 in the New York Times: But ... (full story)