Your Index Fund Is Now An Active Bet, Whether You Meant It Or Not
The point of all this isn't that the index is dangerous or that indexing has stopped working. It's that a passive product can carry an active exposure, and pretending otherwise doesn't make the exposure go away. If you would not deliberately put a third of your equity money into seven correlated te…
Somewhere in the last two years, the S&P 500 quietly stopped being a diversified investment and became a concentrated one. The seven largest companies in the index now account for more than 30% of its market capitalization, a level of top-heaviness w... [5894 chars]