A recent supplement to the prospectus indicates the following:
Under the revised policy, the Fund will continue to track its target index even if
the Fund becomes nondiversified as a result of an index rebalance or
market movement.
Additionally, it is stated that
Because the Fund seeks to closely track the
composition of the Fund’s target index, from time to time, more than 25% of
the Fund’s total assets may be invested in issuers representing more than 5%
of the Fund’s total assets due to an index rebalance or market movement,
which would result in the Fund being nondiversified under the Investment
Company Act of 1940. The Fund’s performance may be hurt
disproportionately by the poor performance of relatively few stocks, or even a
single stock, and the Fund’s shares may experience significant fluctuations
in value.
Is this a tempest in a teacup or cause for concern?
Under the revised policy, the Fund will continue to track its target index even if
the Fund becomes nondiversified as a result of an index rebalance or
market movement.
Additionally, it is stated that
Because the Fund seeks to closely track the
composition of the Fund’s target index, from time to time, more than 25% of
the Fund’s total assets may be invested in issuers representing more than 5%
of the Fund’s total assets due to an index rebalance or market movement,
which would result in the Fund being nondiversified under the Investment
Company Act of 1940. The Fund’s performance may be hurt
disproportionately by the poor performance of relatively few stocks, or even a
single stock, and the Fund’s shares may experience significant fluctuations
in value.
Is this a tempest in a teacup or cause for concern?
Statistics: Posted by Retiredrocketbuilder — Wed Dec 04, 2024 7:46 am — Replies 5 — Views 473