> The majority of pension funds (public or private) and 401k plans are simply passive index funds
That’s completely wrong.
Most 401k plans have by far more active fund options than passive fund options. Notwithstanding, more and more dollars are tilting towards the passive index funds, i.e. through consumer choice.
Where do you get your information from?
You do realize that passive funds have more money than active funds today, right?
https://finance.yahoo.com/news/passive-etfs-hit-tipping-poin...
Sometime last year, passive funds overtook active funds.