'SIZE' Matters When Turning the Market-Cap Equation Upside Down

The video tutorial discusses a financial index known by its ticker size, which reverses the traditional market cap equation by giving smaller companies a heavier index weight. The index includes around 650 US-based companies, with a focus on tech, industrials, financials, and consumer discretionary sectors. Despite trailing the S&P 500 by 10 percentage points since its 2013 launch, the fund has attracted $450 million in assets and maintains a low expense ratio. It receives a favorable rating from Bloomberg Intelligence for its alternative weighting approach.

What is the unique approach of the Size index fund compared to traditional market cap indices?

• It only includes international companies.

• It gives larger companies a heavier index weight.

• It allocates equal weight to all companies.

• It gives smaller companies a heavier index weight.

How often is the Size index fund rebalanced?

• Annually

• Semiannually

• Quarterly

• Monthly

Which sectors does the Size index fund emphasize more heavily?

• Materials and Communication

• Real Estate and Energy

• Technology and Industrials

• Healthcare and Utilities

What is the expense ratio of the Size index fund?

• 10 basis points

• 15 basis points

• 20 basis points

• 25 basis points

How has the Size index fund performed compared to the S&P 500 since its launch?

• It has trailed by around 10 percentage points.

• It has outperformed by 10 percentage points.

• It has outperformed by 5 percentage points.

• It has matched the S&P 500 performance.