Do ETFs Distort Earnings Announcements?

From one perspective the move from active, human portfolio decision making to passive, computer-driven investment management mirrors societal trend shifts to various degrees. The impact automated intelligence has on a job function, for instance, transforms the human from a leader to a follower to various degrees. In a human / computer artificial intelligence integration project, computers often frame decisions, provide probability path analysis, and point the human in a direction to make a decision. The same can be seen in how high passive ETF participation are impacting active stock management. A new study from hedge fund portfolio management services firm Symmetric highlights just how deadened key stocks have become to the most important idiosyncratic performance driver of all:...