INDEX ISSUES

Since 4/2003, the Equal-Weighted S&P 500 Index, where each firm is roughly 1/500 of the index when each quarter starts, returned an annualized 11.65% average return, versus 11.34% for the S&P 500 Index. But investors invest in funds that track the index. A huge difference. Since 4/2003, S&P 500 funds have slightly outperformed the EWS&P 500 due to higher transaction costs due to more trading and trading of smaller firms.