x-post from /r/personalfinance
Hey, I'm rather new and this is just a question to make sure I'm understanding what could have happened properly. But let me explain first. Last night ASX:VTS (US Total Market Shares Index, Vanguard PDF download) dropped by 0.86%, meanwhile the Dow Jones and S&P 500 rose by 0.50% and 0.28% respectively. In addition, the top 10 holdings (which account for 15.4% of the ETF) changed by the following:
| Symbol | Delta (%) |
|---|---|
| AAPL | +0.54% |
| GOOGL | +0.47% |
| MSFT | +0.91% |
| XOM | +1.02% |
| JNJ | - 1.23% |
| BRK.A | +0.45% |
| AMZN | +0.39% |
| JPM | +0.75% |
| GE | +0.32% |
| FB | +1.40% |
Which looks pretty great, considering they're the most influential 10 companies on the ETF. However, that must mean that the companies in which the remaining 84.6% of the ETF are invested must have done really poorly in order to drag the ETF down to a -0.86% for the night. Am I correct in saying that? Or is there another explanation that I'm not aware of? Also, how common is that? Is it expected that the larger holdings perform better than the smaller holdings, creating this situation in which the top holdings seemingly perform well but the ETF still fell?
Thanks in advance!
Submitted January 12, 2017 at 07:15AM by Sairothon http://ift.tt/2igeU7i
