Elon Musk says passive funds have gone too far

The debate over the risks of ETFs and indexing has been building for years as passive funds relentlessly grab market share from their active rivals

Elon Musk: 'There should be a shift back towards active investment. Passive has gone too far.'

Elon Musk and Cathie Wood criticized passive investing in a Twitter thread, weighing in on a long-running Wall Street debate about the growing power of index funds.

Their discussion was sparked by venture capitalist Marc Andreessen, who said firms like BlackRock Inc. have outsized voices in many corporations because of the voting power attached to their huge passive vehicles.