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Companies leave the index when they fall below a certain market cap. Companies enter the index when they are above a certain market cap. That is literally the d
by cracker_jacks 6y ago
Companies leave the index when they fall below a certain market cap. Companies enter the index when they are above a certain market cap. That is literally the definition of buying high and selling low.
- david-gpu 6y agoThe turnover rate is low and the weight of those companies in the index is very small. That said, I prefer broader indices.