Are Index Funds Over-Diversified?

Are Index Funds Over-Diversified?

Every now and then I hear the comment that index funds result in over-diversification. The thinking goes that instead of buying all of the companies in an index, you might be able to focus on a smaller subset that you believe will perform better than the market.


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The video on this page was originally published June 22, 2019. It is republished here with permission of Ben Felix. No further republication or redistribution is permitted without the written consent of Ben Felix.