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>isn’t there a well known price premium for stocks included in major index funds? Maybe the premium is for being in the index, which the index fund dutifully r
by tobylane 7y ago
>isn’t there a well known price premium for stocks included in major index funds?
Maybe the premium is for being in the index, which the index fund dutifully reacts to. There are only 100 places in the FTSE100 so it is seen as significant. The current news about a major UK high street retailer is that it dropped out of this index, implying it's the beginning of its end. https://www.google.com/search?q=marks+and+spencers&tbm=nws https://www.google.com/search?q=marks+and+spencers&tbm=nws