The Froogal Stoodent Takes On Vanguard
In my constant search for better, easier, more profitable ways to invest, I've run into a fact that disturbs me more and more as I continue to think about it: most total stock market indices, such as Vanguard's VTSAX, are market-cap weighted.
What does that even mean?
Well, it means that a greater proportion of every investment dollar goes to the largest companies in the market.
At first glance, you'd think, "More of my money is going to the Apples and Googles and Microsofts of the investment world. Isn't that a good thing?"
Maybe.
But maybe not.
