Your SP 500 Index Fund Is NOT Diversified

I am quite passionate about this topic as it starts to get to the root of my overall investment philosophy.  When you go about building an investment portfolio there are basically two conflicting concepts of how to do that  “indexing vs active management” and I'm here to say that S&P 500 index funds are NOT diversified like most people think because of how the index is actually calculated.  In this episode we'll talk how that is, what a market capitalization weighted index really means, and how to use that knowledge in your own investing.  

 

Please visit www.rhitch.com/resources for more information and PDF's mentioned in this episode. 

 

Ryan Hitchcock

Financial Planner

High Point Capital Group

 

Direct: 414-253-4611

rhitch@hpcg.com

 

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is not guarantee of future results.  Securities and investment advisory services offered through SagePoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. 

 

1200 N. Mayfair Rd., Suite 300, Milwaukee, WI 53226. Phone: 414-253-4600.