Why Cap-Weighted Funds Aren't for Everyone
Joe Nocera finds himself enmeshed this week in a rather arcane fight within the world of index funds: the one between cap-weighted funds, on the one hand, and fundamentally-weighted funds, on the other. Nocera ultimately dodges the question - "they've both got a point," he says, but concludes by saying that fundamentally-weighted funds "ain't index funds, and they shouldn't be viewed as a replacement for index funds", which shows which way he's leaning.
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