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- Nov 27, 2014
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This article is about how index funds, like the S&P are weighted. It describes how when you buy the index, you are disproportionately invested in companies like Tesla. Not saying the advice in the article is good, but would like to discuss the implications of owning a weighted fund. Personally, I don’t like having so much, in percentage terms, in so few companies. I think of an index fund as being more broad and it’s really not.
Maybe a thing to do is to buy some other funds that are industry specific or capital size (small cap) specific to complement an index fund.
What are the thoughts from this group?
https://www.marketwatch.com/story/why-index-funds-are-nuts-11618425937
Maybe a thing to do is to buy some other funds that are industry specific or capital size (small cap) specific to complement an index fund.
What are the thoughts from this group?
https://www.marketwatch.com/story/why-index-funds-are-nuts-11618425937