Index reconstitutions can distort prices, creating risks for passive S&P investors when hot new names join at stretched valuations. Learn how equal-weight funds, stricter indexes, and customized accounts may help manage these pressures in the video below.
*This video was published on May 29, 2026.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
How index rebalancing can distort prices and what passive investors can do to protect themselves.