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Nah, because the value of the stock that the index fund already owned would also increase in the same proportion.
by OscarCunningham 10y ago
Nah, because the value of the stock that the index fund already owned would also increase in the same proportion.
- icebraining 10y agoFair enough, for stocks the index already owned, but what about for the others? If the investor took a stock that wasn't in the top 500 and inflated its value above the 500th stock, wouldn't an S&P 500 index fund then buy it?