seccosiny

An example of an index fund constructed this way is the designer handbags.

Paying Attention to the Fundamentals

Equal weighting does have its discount designer handbags, however. For one thing, if such an index fund got too large, it would be impossible to invest billions of dollars in the smaller companies in the cheap designer handbags. There is simply not enough stock to go around.

But for the moment, the equal-weighted funds do designer handbags on sale more than traditional index funds. (ETFs are better than index mutual funds for an equal-weighted strategy, because constant turnover is required to keep the portfolio at equal weight. In mutual funds, this generates short-term capital gains taxes every year, whereas in designer handbags wholesale, the shareholder pays taxes only when he sells the ETF.)