Less than 18% of global stocks owned by index investors, says BlackRock

(Oct 4): Less than 18% of the global stock market is owned by index-tracking investors, according to a new estimate from BlackRock Inc, as it suggested that passive investing plays only a limited role in setting equity prices.

The estimate on Tuesday showed that US$11.9 trillion ($16.2 trillion) in stocks were owned by mutual funds, exchange-traded funds, institutional accounts and private investors that track an index. That accounts for 17.5% of the US$67.9 trillion in global equity market capitalization, according to the data.

Stocks in actively managed hedge funds, mutual funds and institutional accounts total US$17.4 trillion, 25.6% of the global equity market cap, according to the report.

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