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Benchmarking incentivizes fund managers to invest a fraction of their funds assets in their benchmark indexes, and such demand is inelastic. We construct a measure of inelastic demand a stock attracts, benchmarking intensity (BMI), computed as its cumulative weight in all benchmarks, weighted by assets following each benchmark. Exploiting the Russell 1000/2000 cutoff, we show that changes in stocks BMIs instrument for changes in ownership of benchmarked investors. The resultant demanddoi:10.1093/rfs/hhac055 fatcat:ip4dmcssyjh7fkx3ukrveink6y