News for hackers. Stuff that matters.

A comment on Are Index Funds Eating the World?. Parent comment

Re:Are Index Funds Eating the World? by loeg on Friday August 26, 2016 @06:27PM (#12369739)
Not really? Go to http://quotes.morningstar.com/chart/fund/chart?t=VITSX&regio... and click on "Maximum" and compare to VFINX. The total market and S&P500 indices have tracked really closely for a long time. You're not missing out on much, if anything, by holding only the S&P500.
[ Parent | on HN ]
Re:Are Index Funds Eating the World? by mortehu on Saturday August 27, 2016 @10:53AM (#12372584)
tcoppi is arguing against market cap weighting, which is the reason why VITSX is so close to VFINX despite containing other stocks.

If the total market is outperforming S&P 500, that means the companies not in S&P 500 perform better overall, so giving them greater weight than suggested by their relative market cap would have been beneficial.

[ Parent | on HN ]
Re:Are Index Funds Eating the World? by loeg on Saturday August 27, 2016 @12:49PM (#12373115)
Total market has outperformed slightly since 2008, but for a good period prior to that, the S&P500 was outperforming total market (also slightly). It's not super cut and dried.
[ Parent | on HN ]