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How Index "Gaming" Around S&P Additions Could Hurt Passive Investors -- and Smart Ways to Defend Your Portfolio

The Motley Fool·
How Index "Gaming" Around S&P Additions Could Hurt Passive Investors -- and Smart Ways to Defend Your Portfolio

Index reconstitutions can distort stock prices when new companies are added to the S&P 500 at stretched valuations, creating risks for passive investors. The article suggests defensive strategies including equal-weight ETFs, stricter indexes, and customized accounts to mitigate these pressures.

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