Index Funds Are the New Kings of Wall Street

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Index Funds Are the New Kings of Wall Street
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The passing of the asset crown is the latest chapter in one of the most dramatic transformations in the history of financial markets

Money managers that mimic the stock market just became the new titans of the fund-management world.

Funds that track broad U.S. equity indexes hit $4.27 trillion in assets as of Aug. 31, according to research firm Morningstar Inc., giving them more money than stock-picking rivals for the first-ever monthly reporting period. Funds that try to beat the market had $4.25 trillion as of that date.

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