What is the mechanism behind that?
In a hypothetical market with 100% ETFs, you’d have a status quo.
Edit: maybe not, since you have ETFs that invest in, say, Nasdaq only, which is tech oriented and would influence S&P500.
What is the mechanism behind that?
In a hypothetical market with 100% ETFs, you’d have a status quo.
Edit: maybe not, since you have ETFs that invest in, say, Nasdaq only, which is tech oriented and would influence S&P500.
The problem is that companies with large market cap will get more of any subsequent investment because many fund's allocate new money by current market cap.
If you ever played Risk, or most other games, once the snowball starts, it's hard to stop it.
Of course, since the market has never been like this before, it's a speculation...