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A high number of assets are invested in S&P500 index funds, thus increasing the demand for companies who are included in the index. Would buying companies who rank say 501th to 600th in market cap be a good strategy?

The reasoning is as soon as one of the 501th to 600th largest company grows to qualify and become a member of the S&P500 companies, it should create a large demand from funds and ETFs tracking the index and ultimately increase the company stock price?



Submitted December 08, 2018 at 05:44PM by B2KMTL https://ift.tt/2BcPONt

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