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Fund Spy

Active-Fund Investors Spread Their Bets

Data point to increasing diffusion of assets across active U.S. stock funds, which could theoretically make the market more efficient.


The two decades-long explosion in index funds has been well documented. But lost in the shuffle is another somewhat surprising phenomenon—increasing diffusion of assets across funds.

In this article, we’ll review this change and what it might mean for market efficiency.

Maciej Kowara does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.