The typical "investor" is an ETF these days.
Your standard SPY or VTI investor doesn't know jack diddly squat about shareholder rights, nor do they ever plan to invoke them.
Your standard SPY or VTI investor doesn't know jack diddly squat about shareholder rights, nor do they ever plan to invoke them.
You can always decide to pick an ETF that doesn't invest in the companies you don't like, or invest in individual stocks if you have the time and stomach for it.
I'm saying it's how the world works. The majority of pension funds (public or private) and 401k plans are simply passive index funds with nearly no direct voting rights (and at best very limited, indirect voting rights).
That’s completely wrong.
Most 401k plans have by far more active fund options than passive fund options. Notwithstanding, more and more dollars are tilting towards the passive index funds, i.e. through consumer choice.
Where do you get your information from?
https://finance.yahoo.com/news/passive-etfs-hit-tipping-poin...
Sometime last year, passive funds overtook active funds.
More money is in passive now than active. On a dollar basis, there are fewer votes purchased dollar for dollar.
Even then, active funds don't always offer proxy vote services so I'm not sure wtf active has to do with my original point: that investors today don't seem to give a rats ass about the vote.
Oh, don't worry. I already know the answer. I'm asking if YOU can tell me the answer.
I certainly can't buy individual shares in my 401k program. And very, very few programs I'm aware of ever offered that as an option.
You can have a 401(k) without your employer. My wife has one and can buy and sell any stocks she wants.
The managers ofsuch funds are lazy and invest in multiple mediocre companies, most of whom produce mediocre returns for example investing in 10 tech companies when only two or three of the companies actually accomplish anything won’t help you in the long-term.
Investing in one or two really good tech companies over time allowed me to retire early.
To Elon Musk and Mark Zuckerberg. Who have crafted companies who have virtually no voting rights but get purchased up by the masses through passive index funds.