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cracker_jacks
on May 17, 2020
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Drastic makeover looms for S&P 500
I wonder how buying high and selling low (the strategy of S&P 500 holders) will work out in this new COVID era.
david-gpu
on May 17, 2020
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What makes you think that SP500 index funds, which are cap-weighted, amount to buying high and selling low?
cracker_jacks
on May 17, 2020
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parent
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Companies leave the index when they fall below a certain market cap. Companies enter the index when they are above a certain market cap. That is literally the definition of buying high and selling low.
david-gpu
on May 18, 2020
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The turnover rate is low and the weight of those companies in the index is very small. That said, I prefer broader indices.
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