A stock index is comprised of constituent stocks that, when pooled together, provides an indication of something. For example: The Dow Jones Industrial Average comprises 30 of the largest and most influential companies; and The S&P 500 consists of thetop 500 U.S. stocksby capitalization. The ...
The math is simple. Today, Apple (NASDAQ:AAPL) alone represents 6.82% of the cap-weighted S&P 500. That’s fine as long as that stock is going up, but it also implies that a supposedly diverse index isn’t really all that diverse. Conversely, the top 10 holdings inRSPcombine for bare...
A stock index is comprised of constituent stocks that, when pooled together, provides an indication of something. For example: The Dow Jones Industrial Average comprises 30 of the largest and most influential companies; and The S&P 500 consists of thetop 500 U.S. stocksby capitalization. The ...