This is better than most articles on this subject but still a fairy tale. Passive investing (buying everything in proportion to market cap) by definition creates no relative price impact. Price impact is only created by active trading.https://www.ft.com/content/994bdda8-b704-4e4c-9b19-4e0021f0b309 …
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Of course you can change relative valuations if the fund you redeem from has a high active share.
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Cool thanks for the reply, I get it.
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