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> I should point out that the index isn't really _just_ the largest 500 companies; they try to keep it properly weighted by sector and some other considerations
by breck 10y ago
> I should point out that the index isn't really _just_ the largest 500 companies; they try to keep it properly weighted by sector and some other considerations as well.
Which leads to my question--is that extra work relatively minimal or significant and hard to produce?
- infinite8s 10y agoThe difficulty comes when operating at Vanguard's scale. When buying large amounts of any particular stock you want to make sure you don't move the market too much (to minimize the average cost for that trade).