How Do Index Funds Work?
The fund does not ask which company will do well; it asks whether the company is on the list.
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1.Who picks the stocks in a typical index fund?
The fund does not ask which company will do well; it asks whether the company is on the list.
2.What is an enhanced index fund?
A typical index fund buys a portfolio that includes all the stocks in its index.
3.Why would a fund hold only a sample of the index?
ESMA described both ways in 2012: all the securities, or a representative sample.
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