In 2024, passive investments have reached a historic milestone, now comprising the majority of the U.S. fund market. This shift has sparked criticism from various stakeholders concerned about the growing dominance of passive strategies. Institutional investors have increased their allocation to U.S. stocks to a record 36%, while their cash holdings have dropped to the lowest level since 2001. Concurrently, U.S. money market fund assets have surged to a new high of $6.75 trillion, reflecting a doubling over the past five years. This increase is attributed to approximately $2.2 trillion flowing into these funds since the Federal Reserve began raising interest rates in March 2022. However, the trend has also seen active equity funds experience a record outflow of $450 billion, as investors have pulled funds from traditional stockpicking strategies, which have struggled to deliver competitive performance relative to index funds. Notably, U.S. equity funds recorded a staggering $50.2 billion in outflows for the week ending December 18, marking the largest outflow since September 2009.