Morningstar's Bundy: Why the index industry needs a reset

Victims of their own success

Since the first index-based investment funds were introduced in the early 1970s, indices have become an extraordinarily central part of investing and, in the process, have become a big business.

With this growth has come the emergence of a huge array of market benchmarks that help investors track investment performance, and, even more consequentially, underpin investment products such as ETFs which have been at the heart of the passive investing revolution. CRUX expands UK equities team with new investment analyst The index industry has spent 50 years fuelling an investment revolution, and as a whole, now needs to change quite fundamentally to position itself for the future, or risk losing its relevance. The truth is that the industry's recent record has been mixed. The...