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Listener Questions: Index Funds, Bonds, Robo Advisors

Barron's Streetwise

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S&p 500

S&P uses an earning screen. They use a profitability screen. So you tend to get, I guess, higher quality companies in that index. S&P recently updated the market cap guidelines on their index funds. If you're buying into the small cap index, a small cap now is defined as a company between $850 million and $3.7 billion.

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