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Of course the market as a whole has been always indexing by mathematical necessity. Indexing is just a label, true, but it happens to be the label applied to in
by kgwgk 8y ago
Of course the market as a whole has been always indexing by mathematical necessity. Indexing is just a label, true, but it happens to be the label applied to investing exactly in proportion to the weight of each stock in the index. As opossed to "active investing".
- fjsolwmv 8y agoBut the subtler point is that your index fund is mostly invested in a few big companies,plus noise. AAPL ($1T) itself is 3% of the entire US stock market ($30T).