ETFs are booming: here's why that matters to micro caps
Australian ETF funds under management surged $56bn in a single financial year, and every dollar of it flows into the largest stocks. What the passive investing boom means for smaller companies and their increasingly rare active investors.
Ben Williamson
12 September 2024 · 3 min read
I recently wrote about the wildly differing performance of different-sized companies. Larger companies have been gang-busters while smaller companies have been relegated to struggle street. Looking into it more, we saw that the rise of ETFs and passive super funds has been a big contributor.
So let's break down what's happening there and what we can draw from it.
The unexpected force driving market dynamics
So I'm going to assume y'all know what an ETF is. There are lots of them and of different types, increasing in their range.
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