Manlobbi,

Thank you. All great points and very interesting chart. I have a pretty large SPY position but unfortunately it is in a taxable account so I’m less eager to reposition to an equal weight ETF. Jim seemed to like QQQE better than RSP based on his data. Are you in agreement with this conclusion for the long-term?

Also, do you have any concerns about the growing influence of passive market cap funds and their huge growing flows creating an “artificial” advantage based on their influence and size alone vs. equal weight? Excerpt from CNBC piece linked below.

“They have argued that index ownership concentrates into a small handful of firms (BlackRock, Vanguard, State Street, etc.) that can have outsized influence on the markets. Some have argued that because stocks are indexed by market capitalization, passive indexing will push money into the largest firms, regardless of whether the companies are performing well.”

https://www.cnbc.com/2023/02/22/growth-of-etfs-and...

Index Investing FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.