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To: 16yearcycle who wrote (24626)	12/3/1999 12:08:00 PM
From: Randy Ellingson	Read Replies (2) \| Respond to of 27307

An index fund must own the shares in the index or it is simply not an index fund. It must be weighted the same. It under performs due to transaction costs and management fees. Gene, I believe that some index funds are set up to mimic the returns of an index, rather than to precisely represent the index through their equity ownership. Of course the prospectus must specify this. TIAA-CREF, I believe, has an Equity Index fund which is designed to mimic the Rutherford 3000 (which in turn typically tracks the S&P 500 pretty well) without owning all of the companies. It seems to work very well. Randy