Have Index Funds Become Too Popular?

One of the biggest market debates in recent weeks pertains to a question that has flummoxed investors for years: should I put all of my money in broad-based index funds or try to beat the market by investing actively in stocks? It seems that after the 2008 market crash index funds have won -- more than $3 trillion in assets are now invested in index funds, according to industry trade group Investment Company Institute. Major U.S. markets are ending 2013 in record territory; the Dow Jones Industrial Average is up 20% since Jan. 1 while the S&P 500 Index has gained 25% year-to-date.