Index investing has become one of the most popular ways to build a portfolio, and for good reason. Craig explains the one thing that gets left out of most of the hype: an index fund follows rules, not logic, which means it has to hold every company that qualifies for the index regardless of whether that company is a good investment. He walks through why that risk is smaller in a broad large cap index and larger in small cap, emerging market, or more concentrated indexes.
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