10 Myths Of Indexes

Great article for investors and advisors who like precision: “Ten Stock Index Myths” by Robert Waid. The article is not geared towards index investing, or passive investing at all. Here are some highlights of the article:

  • The S&P 500 includes the 500 largest stocks: FALSE
  • The Wilshire 5000 has 5000 stocks: FALSE
  • Stock splits don’t affect index weights or returns: Sometimes FALSE
  • The NASDAQ 100 comprises the largest 100 NASDAQ stocks listed in the US: FALSE two times over

Click here to read the original article. Enjoy!

Preet Banerjee
Preet Banerjee
...is an independent consultant to the financial services industry and a personal finance commentator. You can learn more about Preet at his personal website and you can click here to follow him on Twitter.
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