The Tell: How trillion-dollar stock-market index funds are vulnerable to manipulation that ‘could harm American investors’

Dangers may lurk in index funds, a popular area of the stock-market known for its recent and consistent record of outperformance against actively managed funds, according to experts.

A recent op-ed in the New York Times cautions that passive index funds may be vulnerable to bias and, possibly manipulation, as interest in those funds has ballooned over the past decade.

Read:Opinion: Why the ‘mania’ for index funds won’t derail the stock market

This is how Robert J. Jackson Jr., a member of the Securities and Exchange Commission, and Steven Davidoff Solomon, a professor at the University of California, Berkeley, Law School put it in an article the Times article published Feb.

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