IFin Seminar, Bo Becker - Stockholm School of Economics - "The Global Rise of Index-Based Ownership of Firms"

Bo Becker -  Stockholm School of Economics  

Speaker:  Bo Becker -  Stockholm School of Economics  

Title:         "The Global Rise of Index-Based Ownership of Firms"

Date:        December 11 , 2025

Time:        12:25 - 13:40

Room:       Red Room (Executive Center)

USI West Campus

Abstract:

We develop a simple and replicable four-variable model that identifies index-based investors with 97% accuracy. Our analysis shows that index ownership grew from 3.5%   of global market capitalization in 2004 to 16.9% by 2023, driven by growth in explicit indexing. By end of 2023, index funds own 10 percent or more of 5,300 firms globally. In the U.S., mid-caps have more index ownership than large-caps. In Asia and Europe, index ownership is increasing in size, and only the largest firms experience significant index ownership. Differences in free float and indexing growth help explain regional variations in index ownership.