(Bloomberg) — From each according to his ability, to each according to his flows?

Goldman Sachs has hit on one way in which the rise of passive investing might resemble Marxism, arguing that the popularity of funds seeking to replicate market indexes has the effect of rewarding corporate directors more equally than the fundamental performance of their respective businesses might warrant.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.