Did you know that almost 20% of the active shareholding of S&P 500 companies is held by international investors?
At the end of 2016 just 61% of domestic (U.S.) shareholding in the S&P 500 was active. The figure for international (ex-U.S.) shareholding was 84%. U.S institutions still dominate the institutional investment community in this country, but the importance of international investors continues to grow.
Ipreo’s latest special report goes further and asks whether these international investors are mostly persuadable (Active) or IR-immune (Passive)?
Over the past 10-year period, the well-known phenomenon of growth in passive shareholding, led by U.S. ETF managers, has altered the profile of the domestic (U.S.) shareholder base. Ten years ago, 72% of the institutional ownership of the S&P 500 in domestic (U.S.) hands was with active shareholders. At the end of 2016 that number had fallen to 61% (Exhibit 1). The enormous growth in ETFs managed by Vanguard, BlackRock, and State Street, explains much of this change.
Read the Ipreo Special Report: Who’s Active in a Passive World?