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No. of Recommendations: 3
“If you don't have a knowledgeable view about their individual prospects, the vastly lower concentration risk of the equal weight version is more sensible.“

A huge negative of the equally weighted index is that they have to re-balance it every Quarter. That drives portfolio turnover through the roof... so we have to subtract from our returns the corresponding tax hit. We also have to subtract the slightly higher annual fee... Obviously the turnover taxes are moot in a tax sheltered account. All else being equal I would prefer the Equal Weight index but it’s not equal... we have a cost drag to consider.

HB
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