Apple's 20% Endogenous Return Driven by Passive Flows

2 months ago

Mike Green

"what it says right now is that a stock like Apple appears to have about a 20% endogenous return associated with the flow of assets from passive and that's accelerating because of Apple's weight in the index."

Mike Green highlights that Apple's passive flows are contributing significantly to its returns, estimating a 20% endogenous boost driven by its index weight. He argues that this passive factor is altering market dynamics by continuously pushing capital into stocks like Apple, thereby reinforcing their upward momentum over the long term.

Related Stocks