Stock Market Pit

Are Equal Weight Indexes Bias-Free?

Over the past several years there’s been a lot of derogatory talk against traditional market cap weighted indexes. And one of the oft-repeated arguments against traditional indexing that you’re guaranteed to read about or see is something like, “Market cap weighted indexes overweight overvalued large-cap stocks and underweight undervalued smaller-cap stocks.” As a result of these arguments, there’s been a relentless …

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