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Seems to me it's the opposite. The holdings of the Norway fund are more diversified than any given Australian fund, simply because a larger pie can be sliced up

Seems to me it's the opposite. The holdings of the Norway fund are more diversified than any given Australian fund, simply because a larger pie can be sliced up into more slices. You can view the Norway fund's holdings on their website: https://www.nbim.no/en/the-fund/holdings/holdings-as-at-31.12.2018/ https://www.nbim.no/en/the-fund/holdings/holdings-as-at-31.1... It seems pretty diversified to me! A larger fund also has advantages for ROI (even putting aside the much lower fees) because you can be a more activist shareholder and invest in more sophisticated ways.

CryptoPunk 8y ago
Of course a gigantic fund will be more diversified than any single small fund. But the aggregate diversity of all of the funds that all of the individual accounts invest in will be greater than that of any single fund. >>A larger fund also has advantages for ROI (even putting aside the much lower fees) because you can be a more activist shareholder and invest in more sophisticated ways. Small fund managers are free to invest in large funds to gain these advantages. They have the added advantage of being able to select from smaller cap investment options as well.