Policymakers urged to implement a framework to address active and passive index investing blur

The institute has proposed that index methods must be categorised by the extent of energetic administration they incorporate past conventional market-cap weighting. 
This lack of readability stems from newer index-based methods, resembling good beta ETFs and direct indexing which introduce extra energetic decision-making into traders’ portfolio development, a departure from conventional division into energetic and passive administration strategies. 
In its suggestions to policymakers, the CFA Institute urged these with regulatory or legislative energy to create and implement “a complete re…