For the first time, Index Funds holdings exceed Actively Managed Funds holdings per Morningstar.
There has been a trend for many years of investing in index funds and likely that trend will continue. What this means is that 401Ks will continue to be investing in the S&P 500 and these stocks will continue to be a good long-term bet. It also means that most “investors' in these funds are in for the “long haul” and we might not see the traditional level of capitulation which has occurred in previous sell offs, at least for the S&P 500 stocks.
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