In 1976, the management guru Peter Drucker published an article called Pension Fund Socialism. Today it has been mostly forgotten, but its a remarkable look at how pension funds – relatively new in his day – were reshaping finance and capitalism.

Today we are confronting a new stage in the evolution of financial capitalism: index funds and passive investing.

Index funds are cheap, simple to enter, and offer broad exposure. While many of us have experienced how Vanguard or iShares have revolutionized the personal investing experience, these entities are having far wider institutional effects.

Nathan Tankus’ wonderful substack has a new guest piece out on how the index fund industry is reshaping financial capitalism. Do check it out.

If the topic interests you, the FT’s Robin Wigglesworth is writing a book on it and is well worth following.