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Do Vanguard and BlackRock Own Too Much of Corporate America?

University of Chicago law professor Eric Posner proposes limiting the companies that large index fund providers can own in one industry.

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Eric Posner is the Kirkland and Ellis Distinguished Service Professor of Law and Arthur and Esther Kane Research Chair at the University of Chicago Law School. Among his research interests is the question of the increasing concentration of ownership in corporate America, including the role of institutional investors.

A recent paper he cowrote, in which he proposes limiting the companies an index fund can own in one industry, caught our attention, and we wanted to learn more. We talked with Posner on two occasions in the fall. Our conversation has been edited for clarity and length.

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