3 ms·
Imagine you invested in the index minus Nikola. This isn't improbable as several hours of due diligence would have raised concerns. This shows that the choice
by bsdpufferfish 3y ago
Imagine you invested in the index minus Nikola. This isn't improbable as several hours of due diligence would have raised concerns.
This shows that the choice of stocks included in an index is not arbitrary. You don't get "better on average" automatically just by buying the 500 stocks on a list someone sold to you.
- sgerenser 3y agoThe share of Nikola in a total-market index fund was so tiny as to be negligble. If one person invested $100K in a total market fund, and another put together thier own "total market minus nikola" fund, even with zero trading fees, the latter might be up maybe $10 or so over the former. After fees and slippage, they're almost certainly behind.