Are Index funds Illegal or Evil?

Some argue that Index funds democratize investing simply because they offer cheap access to a diversified portolio representing the market. Of course, Blackrock is amongst such proponents.

Then there is the “ban-index-funds” crowd that argue that holding shares of multiple companies in the same industry is illegal (if that industry is a concentrated market, like, e.g. airlines). Vanguard type of companies that have large shareholdings in such index funds, are illegal from antitrust concerns; based on this thinking.

What do you think? Fees continue to go down (Fintech unstoppable trend) and concetration of index funds is increasing (very few firms are the players).

If you haven’t heard the term “Quasi-Indexing”, you should because it relates to real investments and it helps in understanding the confusion around index funds, actively managed diversified mutual funds, etc.