Great article for investors and advisors who like precision: “Ten Stock Index Myths” by Robert Waid. The article is not geared towards index investing, or passive investing at all. Here are some highlights of the article:
- The S&P 500 includes the 500 largest stocks: FALSE
- The Wilshire 5000 has 5000 stocks: FALSE
- Stock splits don’t affect index weights or returns: Sometimes FALSE
- The NASDAQ 100 comprises the largest 100 NASDAQ stocks listed in the US: FALSE two times over