WTT: When the Benchmark Becomes a Bet

Throughout most of my career, the S and P 500 has been an appropriate bogey to assess manager performance. More than that, it's the most widely used benchmark in the capital markets. But today, it doesn't represent the broad based diversified exposure to The US economy that most participants take for granted when investing passively or measuring manager skill. This What Ted's Thinking considers the evidence, implications, and challenges posed by the current composition of the S and P five hundred. When the Benchmark Becomes a Bet Beating the S and P five hundred is hard. The case for index fun