0.8% of drag is a lot when you can do basically the same thing by not strictly following the index.

There are funds from Dimensional and Avantis that are basically just index funds but with a bit more leeway to avoid these obvious pitfalls, and from what I saw they do perform approximately 0.5% better per year.

0.8% is substantial indeed, but if i understand correctly, it’s 0.8% on that one stock, so much less on the index itself.

Those funds that perform better probably take a higher management fee that might cancel out the gain. May be worth it to have a smoother return though.