No, The S&P 500 Is Not A Momentum Fund

When Netflix was added to the S&P 500 in December 2010, at $10 billion, it represented 0.08% of the index. Today, 1200% later, Netflix has grown to 0.65% of the index and is now the 33rd largest component, behind Pepsi and Disney. With this example and others like it, some people have come to the conclusion that the S&P 500 is really just one giant momentum fund.