History of the S&P 500’s Flaws – Motley Fool
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History of the S&P 500's Flaws
Motley Fool The S&P 500 (SNPINDEX: ^GSPC ) is the most popular stock index in the world. But it's also incredibly flawed. Why? Because it weights its 500 components by market capitalization, which can skew it toward some of the market's most expensive stocks. |
