Post #149 by knighttof3 on the Index Investing board

Investment Strategies / Index Investing

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I hesitate to invest in small/medium cap index based funds for the following reason.

All successful small or medium cap companies will eventually leave their cap indices and be dropped from the index mutual funds or ETFs, leaving more and more losers in the indices. A bad "survivorship" bias.

Would like to know if/why this is wrong.

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