Now that we have commission free trading, I am thinking about trying to copy the S&P 400 index or maybe some other index. If an investor buys one share in 200 of the companies that make up the S&P 400 index are there any legal problems doing so. Would he owe any royalties to Standard and Poor? I would think not.
I believe, but I am not sure, that an index fund that mimics the S&P 400 needs to pay royalties to Standard and Poor. Am I right about that?
Note: I am in the United States