Index funds based on Dividends are available but are not yet mainstream. The main purpose of an index funds is that it "aims to replicate the movements of an i

Index funds based on Dividends are available but are not yet mainstream. The main purpose of an index funds is that it "aims to replicate the movements of an index of a specific financial market"(http://en.wikipedia.org/wiki/Index_fund http://en.wikipedia.org/wiki/Index_fund). Since markets are themselves naturally weighted by the largest players in the market, it makes the best sense to weigh the indexes the same way. Example: Swings of Exxon stock will change the market much more than "Jack's Tools." Index funds capture the market, not beat it. To try to beat the market violates the Efficient Market Hypothesis (http://en.wikipedia.org/wiki/Market_efficiency http://en.wikipedia.org/wiki/Market_efficiency)