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

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

Assessment

Interactive Video

Business

University

Hard

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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.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How often is the Size index fund rebalanced?

Annually

Semiannually

Quarterly

Monthly

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which sectors does the Size index fund emphasize more heavily?

Materials and Communication

Real Estate and Energy

Technology and Industrials

Healthcare and Utilities

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expense ratio of the Size index fund?

10 basis points

15 basis points

20 basis points

25 basis points

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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.