Interesting article

[Fulcrum]

Stumbled across this article earlier today.

Stealth socialism | The Economist (http://www.economist.com/news/finance-and-economics/21707191-passive-investment-funds-create-headaches-antitrust-authorities-stealth)

Ignoring the clickbait title and some poor references to communism, it appears to be fairly accurate and somewhat disturbing.

[Freelancier]

The article is correct: ETFs and indexing mutual funds do indeed give management too much freedom to do whatever they want. Investor voting services for those ETFs and mutual funds are often put out to lowest bid and they'll do as little as possible to earn their fee, which means just voting along with the directors on whatever they want to do. And those funds are contractually required to invest a certain percentage of the fund's money into certain stocks regardless of whether the company is doing the right thing.
The situation has created a bit of a market bubble with too much money chasing stocks based on an algorithm instead of fundamentals.