PT  - JOURNAL ARTICLE
AU  - Harry M. Kat
TI  - Why Indexation Can Be a Dangerous Strategy
AID  - 10.3905/jwm.2003.320475
DP  - 2003 Apr 30
TA  - The Journal of Wealth Management
PG  - 58--63
VI  - 6
IP  - 1
4099  - https://pm-research.com/content/6/1/58.short
4100  - https://pm-research.com/content/6/1/58.full
AB  - In this brief note, the author shows that significant autonomous changes may occur in the risk-return profile of index replicating portfolios. Although the name of the index doesn't change, the underlying risks do. Investors should therefore check regularly whether the index is still what they think it is, and if not make the necessary adjustments.