Mindless Flows Are Not Loss Protection

Summary

• Vanguard founder and ETF pioneer, Jack Bogle, warned that if index funds came to own half of the U.S. stock market, it could lead to significant issues.
• According to the most recent data, more than 70% of inflows into the stock market have gone into passive or index strategies, with the first half of 2025 seeing a record net buying by retail participants.
• Simplify Asset Management’s Mike Green has pointed out that a large portion comes from payroll deductions, and when unemployment rises, these flows naturally slow.

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Vanguard founder and ETF pioneer, Jack Bogle, warned that if index funds came to own half of the U.S. stock market, it could lead to significant issues, like too much influence concentrated in just a few institutional owners, which he believed would be “a problem” for