Comments on: Will Equal Weighted Index Funds Outperform Their Benchmark Indexes?

By: Lynda Mahorter

Lynda Mahorter — Sun, 02 Aug 2020 14:37:17 +0000

Equal weighted ETFs are less tax efficient than market weighted therefore buying inside an IRA makes sense.

By: Bryce

Bryce — Sun, 11 Aug 2013 22:29:57 +0000

Very interesting post. I have always tilted from the large-cap bias of the Vanguard US Total Stock Market ETF (VTI) toward holdings with small-cap value using the Vanguard small-cap value ETF (VBR). Having 50% of my US equities in VTI and 50% in VBR has been a very good thing.

By: Robert Farrington

Robert Farrington — Wed, 31 Jul 2013 14:47:33 +0000

In reply to Chuck@Tortoise Banker. I wouldn't jump to that conclusion. The expense ratios are only 0.40% vs 0.10% for a good ETF. I don't think it's close to a point where you should be concerned too much.

By: Chuck@Tortoise Banker

Chuck@Tortoise Banker — Wed, 31 Jul 2013 06:12:19 +0000

“The biggest drawback to equal weighted index funds are higher expense ratios.”

I fear this point may negate all other findings over an investors lifetime.

By: Dividend investing Martin

Dividend investing Martin — Wed, 31 Jul 2013 05:06:57 +0000

This looks like a good idea. Currently I am balancing my investments based on income they generate and have equal allocation based on income (dividends), so if one stock fails, I lose only a portion of my income and not a significant portion. Earlier, for example I had 40% of all income from one stock and the rest was among the remaining stocks. When that stock cut the dividends, I suffered a significant income. So I am balancing based on income as much as possible.