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You would have to actively rebalance to keep equal weighting, so it is not as passive as typical market cap weighting.
by howlin 9y ago
You would have to actively rebalance to keep equal weighting, so it is not as passive as typical market cap weighting.
- brndnmtthws 9y agoYou still have to rebalance market cap weighted funds, just much less so. Market cap weighted is indeed more efficient, but that's only assuming most stocks don't do things like pay dividends.