The Hidden Cost of Index Funds: You're Settling for the Average
SPY is full of dead weight — here's how to break free from it.
Everyone loves a good index fund.
Low fees. Broad diversification. "You’ll never beat the market, so just buy the market."
That’s the story.
But here’s the truth:
Index funds are designed to match the market — not beat it. And “matching the market” means accepting average.
When you buy an index ETF like $SPY, you’re not buying a basket of winners. You’re buying everything — the good, the bad, and the dead weight.
🪤 Built-in Underperformance
Here’s the fundamental problem:
The S&P 500 is market-cap weighted.
That means the biggest companies have the biggest influence.
But the index still includes all 500 stocks, even the ones that are stagnant, declining, or on life support.
Half the S&P 500 at any given time is underperforming the index itself.
In other words, half the portfolio is actively dragging the average down.
You can do better than that. You should do better than that.
🎯 The Smarter Alternative: Target the Winners
Instead of blindly buying the whole index, the smarter move is to identify the top performers within the index — and stick with them.
That’s exactly the philosophy behind the Lunar Landing Portfolio.
Rather than settling for the average, I track:
Momentum and earnings strength
Sector leadership cycles
Insider activity and institutional flow
Long-term asymmetry — stocks with 5x–10x upside potential
The result? A focused portfolio of 15 stocks — not 500 — with the potential to outperform the index, not just mirror it.
🤯 The Real Cost of Index Funds
Everyone talks about “low fees,” but the real cost is opportunity cost:
You’re owning companies you’d never pick on your own.
You’re stuck with index rules that don’t prioritize performance.
You’re giving up alpha in exchange for safety — and the illusion of control.
It’s not that index funds are bad. They’re just not good enough anymore.
Especially not when tools like commission-free trading, fractional shares, and data-driven analysis are in your hands — for free.
🛠️ Build Your Own Index — One That Actually Outperforms
Want to stop investing in losers and start building conviction?
Join the premium tier and get full access to the Lunar Landing Portfolio, including:
The exact 15 stocks I hold (and why)
Real-time portfolio updates and rebalances
Sector and macro positioning
Monthly performance reviews
Strategy insights and breakdowns
👉 Upgrade to Premium Now
Don’t settle for the average when the tools to outperform are right in front of you.