Are exchange-traded funds ruining the markets for everybody else? The most recent critique of the impact of ETFs suggests the industry has a significant effect in pushing up trading costs, undermining active managers’ ability to generate returns and increasing correlations.

The effect on individual stocks can be seen when ETFs own as little as 3% of the outstanding shares, according to Is There a Dark Side to Exchange-Traded Funds?, an academic paper by Doron Israeli, Charles Lee and Suhas Sridharan, published by the Rock Center for Corporate Governance at Stanford University in the US, in July 2015.