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Listener Questions: Index Funds, Bonds, Robo Advisors

Barron's Streetwise

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Small Cap Differences Between the Russell 2000 and the S&P 600

Warren Duffy asks about differences between the Russell 2000 and S&P 600, which are two small cap indexes that we talked about a few weeks back. If you're in the index and you have a bad year and you're unprofitable, do they kick you out? And if so, is there any problem with that? I'm just thinking like they're selling low, they're pushing you out probably when your stock price is low. Or is that kind of active?

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