Making Simple Less So

Following yesterday’s WSJ article on the three index portfolio was an article on building better indexes. This shows you that the financial services industry continues on its never ending and ever futile effort to create a product to beat the market on a long term basis. Proponents of this approach claimed that the regular method of weighting stocks in an index by market value can be beaten by indexes using an equal weighting. For example, in an equally weighted S&P 500 each stock would r...