How much money is invested in index funds?
According to the Investment Company Institute, less than 10% of all money invested in common stock mutual funds is invested in indexed funds. Since 1995, each year has seen a steady increase in the per cent of new money going into index funds versus regular common stock mutual funds. In 1998, according to Financial Research Corporation, 19% of all new money flowing into common stock mutual funds flowed into index funds. In 1999, the Financial Research Corporation estimated 40% of all new money flowing into common stock mutual funds went into index funds. Indexing is very popular with professional pension managers. According to John Bogle, these pension managers invest 20% of their stock investments using an index fund approach.
