Five Biggest Stocks Are 23% of S&P 500 Market Cap
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Five Biggest Stocks Are 23% of S&P 500 Market Cap
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Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#2Due to the trillions of dollars blindly going into index funds, thereby purchasing these stocks, are these five companies' stock prices way too artificially high ?
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#3Due to the trillions of dollars blindly going into index funds, thereby purchasing these stocks, are these five companies' stock prices way too artificially high ?
"blindly"? People choose index funds very deliberately, because mutual funds are so much more expensive.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#4Due to the trillions of dollars blindly going into index funds, thereby purchasing these stocks, are these five companies' stock prices way too artificially high ?
Depends if you have a better alternative that you think will have better growth in profit.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#5The addition of Tesla in a few weeks will bring this metric down a little bit. Tesla will be a top ten stock but not a top five stock.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#6Try the ETF with the symbol "RSP". It's an S&P 500 fund, but each of the 500 is equally weighted. In other words 0.2% of the fund. The theory is that the larger companies in the S&P 500 have less growth potential, or are already overvalued, compared to the smaller companies.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#7Due to the trillions of dollars blindly going into index funds, thereby purchasing these stocks, are these five companies' stock prices way too artificially high ?
"blindly"? People choose index funds very deliberately, because mutual funds are so much more expensive.
"Blindly" meaning that your average index fund investor has absolutely no idea what's in their portfolio. They are blind investors.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#8Due to the trillions of dollars blindly going into index funds, thereby purchasing these stocks, are these five companies' stock prices way too artificially high ?
"blindly"? People choose index funds very deliberately, because mutual funds are so much more expensive.
I think you mean passively managed mutual fund vs actively managed mutual fund. You can have a passively managed mutual fund that follows an index with extremely low expense ratios like FXAIX or FSKAX.
https://money.usnews.com/investing/investing-101/articles/et...
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#9Due to the trillions of dollars blindly going into index funds, thereby purchasing these stocks, are these five companies' stock prices way too artificially high ?
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Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#10Try the ETF with the symbol "RSP". It's an S&P 500 fund, but each of the 500 is equally weighted. In other words 0.2% of the fund. The theory is that the larger companies in the S&P 500 have less growth potential, or are already overvalued, compared to the smaller companies.
How often does the fund get rebalanced?
That’s the nice thing with the market cap weighted SP500 funds, no tax consequences from rebalancing.
But you could plug “RSP” into a tax-advantaged account.
Edit: You can owe taxes even if you don’t personally buy/sell.
As a fund shareholder, you could be on the hook for taxes on gains even if you haven't sold any of your shares.
https://investor.vanguard.com/investing/taxes/mutual-funds-e...