No. of Recommendations: 3
Though I can't say it describes this specific future--my theme is its unpredictability--it's worth noting that the very largest cap firms in the whole market have historically performed *considerably* worse than those that are a bit smaller. The recent result might continue or might not, but it is a historical anomaly.For the NDX100or equivalent back to 1972, the equal weight has roughly out perfomed the Marketcap weight in only 20years out of 52 years. Overall in the 52 years, marketcap has out performed by a factor of 3.
discussion.fool.com - ETF compare equal weightedFor NDX100 since 1972, the marketcap has performed better than the equal weight, not worse. Note, for the SP500 this is reversed. The SP500 equal weight has performed 2 times better than the marketcap.
Aussi
