Reddragon,May I correct you and give an example of an sp200 fund holding all 200 stocks. http://www.spdr.com.au/etf/fund/fund_detail_STW.htmlYou will note that they state that they are holding 203 stocks. That is why they call them SP200 index funds. They must hold the entire index. Othewise they would be called something (hedge funds, etc)http://www.anz.com/personal/investing-super/shares-managed-funds/online-investment-account/australias-biggest-companies/sp-asx-index/