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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (3429)	2/23/1999 8:39:00 AM
From: Wally Mastroly	Read Replies (1) \| Respond to of 15132

"So you think all S&P 500 index funds are the same? Look again. " fnews.yahoo.com Excerpt of data to ponder: "..Why did the Index funds performed so well in 1998? Because of the market's narrow leadership. The 50 largest companies as measured by market capitalization accounted for 82.4% of the Composite's total return, racking up a return of 40.2%, according to Prudential Securities. The 100 largest S&P companies by market value had a return of 36.6%. Keep in mind that by weight, the first 100 make up 70% of the S&P value while the second 100 account for just 15% of its total value. The farther you go the capitalization ladder, however, the smaller the appreciation. For exactly, the companies which ranked from 1001-200 in terms of market cap returned just 19%, the third quintile 9% and the fourth 8.7%. The 100 smallest companies in the S&P 500 actually lost 1.4%. In fact, the smallest 50 declined by 4.9%..."