Money For the Rest of Us · Wednesday, October 28, 2026
Discussing a paper by Hannah Unterberg, David explained that roughly 70% of what index funds are buying comes from companies issuing new shares, employee compensation, warrants, and convertibles, making corporations and their employees the primary beneficiaries of the index fund boom.
“And so that's who's winning from this. If index funds are actually doing better relative to active managers and those stocks are going up as more and more are bought by index funds, people selling, yeah, it's the companies and their employees that are benefiting the most.”