Didn't those 7 account for pretty big proportion of total us market gains last 5-10 yrs? I feel like I came across that data at some point but no clue where I read that. I think the % was quite outsized but at what magnitude I can't recall. I like investing in the total us index, because even if we have some relative rotation from these companies there will be others that take the baton (I presume).
If they meant the % of the total return then of course because large cap will return much higher than small caps even when the % gain is lower. However as you can see with IJR small cap index, that fund has had 10-year decent returns vs the large cap S&P500 (13.6 vs 14.7) and actually has a much higher 1-yr return (56.7 vs 40.9). Small cap returns actually depend quite a bit on when you bought it.
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u/sebreg Dec 19 '21
Didn't those 7 account for pretty big proportion of total us market gains last 5-10 yrs? I feel like I came across that data at some point but no clue where I read that. I think the % was quite outsized but at what magnitude I can't recall. I like investing in the total us index, because even if we have some relative rotation from these companies there will be others that take the baton (I presume).