Thursday, September 4, 2008

Social Stock Index Aims to Beat S&P 500

One year after it launched, Cake Financial is rolling out a new design today with a load of new features. One of the most interesting is a new stock index called the Cakedex that is based on the top 100 holdings of the top performing investors on the social investing site. Over the past five and half years, the Cakedex would have outperformed the S&P 500, the Dow Jones, and the Nasdaq. Although, over the past 90 days, it has been underperforming the major stock indexes. Next year, the company plans to launch an exchange-traded fund based on the Cakedex so that people can actually invest in it. Can the top investors on Cake do better than the market?

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