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Schwab Touts Fundamental Indexes as Alternative to the S&P 500

Are they really an alternative or just another way to build a index?

http://dailyalts.com/schwab-touts-fundamental-indexes-alternative-sp-500/

Comments

  • That's always a question. What is "better"?

    Some study showing over past chosen number of years they performed better? Certainly one way to sell something

    Simply selling them as a diversification tool, i.e. if you have index funds and/or closet indexers, then buy some fundamental index fund? Not sure how this will sell anything, but it is about marketing.

    Question - isn't traditional indexing kinda like letting your winners run? I mean if Apple performs better and forms more and more of an index, you really want to be more in Apple stock than an under performing stock which you would earn less of or akin to cut your losses right?

    Need to figure out how to get kids interested in investments. Not to actually become better investors. Just so you can find a job in this industry. Seems to me you can always keep yourself employed somehow, doing something, whether it actually helps any one or not.
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