Are BlackRock and Vanguard Too Big and Powerful?

How big index fund and ETF providers have increased their sway over publicly-traded companies while potentially discouraging competition. What can be done about it?Topics covered include:How market share for assets under management has become increasingly concentrated with big fund complexes like Vanguard and BlackRockWhat is a fiduciary relationship and how do asset managers serve as fiduciariesWhy do investors in index funds and ETFs have no input as to how fund sponsors vote on shareholder proposalsWhat percentage of outstanding shares do Vanguard and BlackRock own of publicly traded companies like Apple, Target, or gun manufacturersHow Vanguard and BlackRock use engagement and voting policies to influence publicly traded companies, particularly when it comes to climate risk and diversityHow ownership by Vanguard and BlackRock in publicly-traded companies in the same industry could discourage competition.What can be done through regulation or through individual action to reduce Vanguard and BlackRock's influenceFor more information on this episode click here.SponsorsPolicygenius - save over 50% on life insuranceWealthfront - get your first $5,000 managed for free for lifeShow NotesWhat BlackRock, Vanguard and State Street Are Doing to the Economy by Farhad Manjoo—The New York TimesInvestment Company Fact BookWorld's Top Asset Management Firms—ADV RatingWest Virginia Treasury Drops BlackRock Over Stance on Climate Risk by Alicia McElhaney—Institutional InvestorHow an Organized Republican Effort Punishes Companies for Climate Action by David Gelles and Hiroko Tabuchi—The New York TimesThe Future of Corporate Governance Part I: The Problem of Twelve by John C. Coates, IVLarry Fink’s 2022 Letter to CEOs: The Power of CapitalismBlackRock's gun money by Dan Primack—AxiosInvestment Stewardship 2021 Annual Report—VanguardProxy Voting Policy for U.S. Portfolio CompaniesAnticompetitive Effects of Common Ownership by José Azar, Martin C. Schmalz, and Isabel TecuCommon Ownership and Industry Profitability: A Crossindustry View by Haifeng Wang, Jan-Carl Plagge, James Rowley, Roger A Aliaga-DiazHow ESG investing came to a reckoning by Harriet Agnew, Adrienne Klasa and Simon Mundy—Financial TimesRelated Episodes148: Is Your Financial Advisor Loyal to You?234: Index But Don’t Herd340: Climate Change, ESG, and What Should Investors Do?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.