See V. Sushko and G.Turner, “The implications of passive investing for securities markets,” BIS Quarterly Review, March 2018, for a discussion of the issue. The evidence is ambiguous, see for example “The Shift from Active to Passive Investing: Potential Risks to Financial Stability?,” K. Anadu, M. Kruttli, P. McCabe, E. Osambela, and C.H.
Shin, Federal Reserve Board, FEDS WP 2018-060; also I. Ben-David, F. Franzoni, and R. Moussawi, “Do ETFs Increase Volatility?”, NBER Working Paper No. 20071, April 2014. IOSCO Research Report on Financial Technologies (Fintech), February 2017.