Common Ownership: Solutions in Search of a Problem

Mutual funds and exchange-traded funds are the cornerstone of many Americans’ investment and retirement plans.  (For simplicity, we refer to all these investments as “mutual funds.”)  Collectively, investment companies such as BlackRock, Fidelity, State Street, and Vanguard hold more than $29 trillion on behalf of more than 47 percent of all households in the United States and account for approximately 30 percent of all U.S. corporate equity.  (2020 Investment Company Factbook, 2020 Facts at a Glance)

Yet, according to some antitrust scholars, the large size that makes these mutual funds efficient investment vehicles also makes them unlawful.  Some … Read more