Quote:
Originally Posted by Balticfox
They are weighted. This means the higher the market capitalization of the company, the greater its weight in the index. So as the stock increases in price (in a vacuum), as an index investor the percentage of one's portfolio in that one stock increases.
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I used the term wrong but in any event thank you for the explanation. Are there any index funds that seek to maintain an equal percentage of each holding, and adjust as they fluctuate?