Why the Dow is a useless market index

Re:Why the Dow is a useless market index by tanderson92 on Sunday April 09, 2017 @08:39PM (#14075160)

This is completely incorrect. Betterment, for example, adds nothing that individuals can't do themselves, simply by rebalancing and tax-loss harvesting into similar but not substantially identical ETFs. This way of tax loss harvesting is better because you retain the high diversification of 100s of stocks.

loeg points this out. Wealthfront doesn't do this either.

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Re:Why the Dow is a useless market index by obblekk on Sunday April 09, 2017 @09:09PM (#14075292)

This is only true for small amounts of money.

  Instead of using a single ETF or Index Fund to invest in 
  U.S. stocks, Wealthfront's Tax-Optimized Direct Indexing 
  directly purchases up to 1,001 individual securities on 
  your behalf — up to 1,000 stocks from the S&P 500® and S&P 
  1500® Indices and an ETF of much smaller companies.

From Wealthfront's website: https://blog.wealthfront.com/introducing-direct-indexing/

Analysis from bogleheads: https://www.bogleheads.org/forum/viewtopic.php?t=152903

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Re:Why the Dow is a useless market index by tanderson92 on Monday April 10, 2017 @01:13PM (#14080485)

Thanks, good point.

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