Small Index, Big Stocks

Written By Don McDonald

One of the problems with index funds is the fact that they slavishly follow the index. This means that for long periods they can own stocks that are way outside the indexes parameters. This is one argument for rules-basd funds. Then, listeners ask:

  • Are we concerned about the decline in the number of publically-traded stocks?

  • Is it okay to be 100% in stocks close to retirement?

Don McDonald
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