The part article of the article slightly misstates its own earlier statement
According to this article from
Passive investing, made up of funds tracking market barometers, has now taken over nearly half the stock market as more investors shun
stock-pickers and flock to index funds.
If this literally means that half of all ...
half of all stocks on the market are owned through index funds and ETFs, ... most regular people with a 401(k) aren't going to move out of index funds
"Type of fund" (active or passive) is orthogonal to "type of account" (taxable or tax-favored).
I think that some of your conclusions are wrong.
Apart from the fact that market crashes are rare (1929 and 1987), bear markets occur because of a recession. They aren't causal.
The majority of trading today is institutional. When earnings start to contract in the early stage of a recession, the big boys will sell off holdings regardless of whether they ...
active traders/funds are selling loads of stocks
Every trade has both a buyer and a seller. Limited liquidity magnifies the market impact of an order.
people don't want to lock in losses
In some circumstances, there are tax advantages to realizing losses. Some people also panic sell to limit their losses. Others own shares with borrowed money and are ...
From an interview on a finance podcast with a Senior Key Account Manager at Vanguard, he explains that the administrative and reporting requirements of unlisted managed funds are far above those required by the ASX, hence the additional costs.
Podcast was Aussie Firebug and the comment occurs around the 19:00 mark.
There are many DRIP calculators on the web that will achieve everything what you mentioned. Here's one that I often use:
Here is a Portfolio Asset Allocation backtest tool, courtesy of Chris Rea: