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tcoppi is arguing against market cap weighting, which is the reason why VITSX is so close to VFINX despite containing other stocks. If the total market is outp
by mortehu 10y ago
tcoppi is arguing against market cap weighting, which is the reason why VITSX is so close to VFINX despite containing other stocks.
If the total market is outperforming S&P 500, that means the companies not in S&P 500 perform better overall, so giving them greater weight than suggested by their relative market cap would have been beneficial.
- loeg 10y agoTotal market has outperformed slightly since 2008, but for a good period prior to that, the S&P500 was outperforming total market (also slightly). It's not super cut and dried.