30.09.2015 - Is Your ETF Too Fat?
Apple Inc.'s recent product reveals had us exploring what happens when Apple makes up a large part of your exchange-traded fund. Namely, that kind of so-called "overweight" can have an outsized effect on how that ETF performs. But here's a heads-up: ETFs can get chunky off a whole lot more than Apple. Overweights can come in a variety of ways – a single stock, a handful of companies, an industry, a sector or even a part of the world. Regardless of how it occurs, you should be aware that it does happen, and take that into account before you buy a fund...............................................Full Article: Source
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