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Create Your Own US Equity Portfolio

Individuals who invest in stocks tend to fall into one of two groups: One group purchases specific stocks, but with little apparent awareness of how effectively they are capturing the performance characteristics of the entire asset class; the second group opts for managed investments that include mutual funds, index funds, exchange-traded funds or privately managed accounts. This second group is probably doing a better job than the first at capturing the overall performance characteristics of the asset class, though that depends on the degree to which their total market exposure is properly diversified. Is there a way for an investor to create a concise portfolio that effectively captures the performance characteristics of the entire asset class of U.S. domestic equities?

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