I just saw an ad for a FAANG index fund. Why would you invest in that, several of those companies are direct competitors and it's not large enough to be a real index fund
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It's a very small number of different stocks to put in one fund but the idea of an index fund is it rebalances itself, i.e. if Apple starts winning against Google then you automatically sell off some Apple stock and buy Google stock with it
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I mean it does sound like a bad product still, it's ignoring that the point of index funds was originally to avoid making any kind of stock pick at all and this fund is hyper-specific (if something damages the whole tech sector then you're screwed)
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Yeah, though those five are only sort of nominally competitors. For the most part, they're all growing happily on their own, in separate spheres. Well, except Netflix.
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