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Seven Ways to Slice the Stock Market

Many Happy Returns

CHAPTER

How Much Do Market Cap Weighted Index Funds Really Cost?

An equal weighted index fund has a huge tilt away from mega caps. It's effectively a tilt towards small caps or the smaller of the large caps in the case of the S&P 500. So instead of Apple making up say 5% of any index, you're talking about Apple making up, you know, one 500 for the index if it's an S&P equal weighted tracker.

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