Stephen Cranston Writer & columnist

I have always thought that one of the problems with buying an index is that you do not always get what you pay for. If it is something specific, such as gold shares or technology shares, then perhaps — but Andrew Wellington from Lyrical Asset Management in New York has confirmed what I have always suspected: the S&P value index is a very poor proxy for a basket of US value shares.

At last week’s Momentum Global Investment think-tank, Wellington said S&P divides the market in two, with half the market cap in the growth index — where the shares have on average substantially higher market caps — and half in the value index...

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