Xena's Study Hall

[XenaLives]

I am so tired of B.S. posts like this:

No. Index funds track a specific index - in the case of LWLG, the Russell 2000. So, the index fund MUST own every company in the index in the same proportion occupied by the company in the index. As more investors purchase shares of the index fund, the funds must purchase more shares of ALL COMPANIES in the index to satisfy investor demand.

That’s how it works. That’s why Vanguard and Blackrock purchases don’t mean shit. It just means that they have to add shares to their index funds to accommodate new investors.

It’s not a complicated concept, yet a slew of imbeciles on this board endlessly claim that “institutional buying” is a vote of confidence for LWLG. Obviously, it’s not.

The person calling others "imbeciles" is either an imbecile himself or a liar.

What Is an Index Fund?
An index fund is a type of mutual fund or exchange-traded fund (ETF) that holds all (or a representative sample) of the securities in a specific index, with the goal of matching the performance of that benchmark as closely as possible. The S&P 500 is perhaps the most well-known index, but there are indexes—and index funds—for nearly every market and investment strategy you can think of. You can buy index funds through your brokerage account or directly from an index-fund provider, such as Fidelity.

https://www.investopedia.com/investing-in-index-funds-4771002


List of ETFs That Hold LWLG: 25 ETFs
https://www.etf.com/stock/LWLG

Note that the percentage of LWLG differs in the above list so the purchasing of the stock is not blind.

Types of ETFs
There are three structures of ETFs:

Exchange-Traded Open-End Fund: The vast majority of ETFs are registered under the SEC's Investment Company Act of 1940 as open-end management companies. This ETF structure has specific diversification requirements, as for example, no more than 5% of the portfolio can be invested in securities of a single stock. This structure also offers greater portfolio management flexibility compared to the Unit Investment Trust structure, as it is not required to fully replicate an index. Therefore, a number of open-end ETFs use optimization or sampling strategies to replicate an index and match its characteristics, rather than owning every single constituent security in the index. Open-end funds are also permitted to reinvest dividends in additional securities until distributions are made to shareholders. Securities lending is allowed and derivatives may be used in the fund.

Exchange-Traded Unit Investment Trust (UIT). Exchange-traded UITs also are governed by the Investment Company Act of 1940, but these must attempt to fully replicate their specific indexes to limit tracking error, limit investments in a single issue to 25% or less, and set additional weighting limits for diversified and non-diversified funds. The first ETFs, such as the SPDR S&P 500 ETF, were structured as UITs. UITs do not automatically reinvest dividends but pay cash dividends quarterly. They are not allowed to engage in securities lending or hold derivatives. Some examples of this structure include the QQQQ and Dow DIAMONDS (DIA).

Exchange-Traded Grantor Trust. This is the preferred structure for ETFs that invest in commodities. Such ETFs are structured as grantor trusts, which are registered under the Securities Act of 1933, but not registered under the Investment Company Act of 1940. This type of ETF bears a strong resemblance to a closed-ended fund, but an investor owns the underlying shares in the companies in which the ETF is invested. This includes having the voting rights associated with being a shareholder. The composition of the fund does not change, though. Dividends are not reinvested, but they are paid directly to shareholders. Investors must trade in 100-share lots. Holding company depository receipts (HOLDRs) is one example of this type of ETF.

See the original for definitions of terms.
https://www.investopedia.com/articles/exchangetradedfunds/08/etf-mutual-fund-difference.asp

What Fidelity says about index funds:

Common types of index funds
Index funds can have different themes. Some of the most common include the following.

Broad market: These index funds include investments across companies of all sizes and industries, but they’re generally meant to represent the stock market as a whole.

Sector: As the name implies, these index funds track the performance of a specific sector, such as health care, technology, or consumer goods.

Domestic: These funds track the performance of groups of investments within the US.

International: Not surprisingly, these funds track the performance of investments and markets outside the US, but you still can buy shares of these index funds through a US-based brokerage.

Bond: Another aptly named index fund type, these funds invest in bonds that make up bond indexes.

Dividend: These funds track companies that pay out higher dividends—portions of a company’s earnings that some companies distribute out to current investors. The funds can pay out dividends too, based on the performance of the companies that the funds track.

Socially responsible: These funds also track market indexes but can be exclusionary, removing companies from the index that don’t meet certain social or ethical standards. For example, a socially responsible index fund might not invest in companies that produce products that are harmful to the environment.

Growth: These funds track companies or sectors that are believed to have the potential to grow faster than the general market.

Value: Investments that are low-cost in relation to the company’s success are considered to be value investments. Value index funds aim to copy the performance of indexes that include these companies’ stocks.

Indexes frequently tracked by index funds
In addition to the S&P 500 here are several examples of large indexes tracked by index funds:

Nasdaq Composite Index®: The Nasdaq is another popular index made up of more than 2,500 stocks. It’s heavy with technology companies over other sectors.

Russell 2000: This broad market index covers more than 2,000 “small cap” stocks, or companies with smaller market capitalization, or valuation. It aims to represent the performance of smaller US companies.

Bloomberg US Aggregate Bond Index: This index looks to track the performance of all types of bonds in the US, including corporate and government bonds.

https://www.fidelity.com/learning-center/smart-money/what-is-an-index-fund