Indexes have broad reach, but the amount of the U.S. market’s investable market capitalization they capture varies. Broad diversification ensures that investors have a stake in the market’s winners and mitigates the impact of owning a lot of losers. This article describes how the CRSP Indexes seek to deliver optimal and comprehensive market exposure.
Kai Li | Sauder School of Business, University of British Columbia
Feng Mai | Stevens Institute of Technology
Rui Shen | Nanyang Business School, Nanyang Technological University
Xinyan Yan | School of Business Administration, University of Dayton