There is some debate on whether equal-weight index funds perform better than their counterpart – market capitalization-weighted (cap-weighted) index funds.
Cap-weighted index funds are the more popular and more widely available option. Likely, if you’re invested in an index fund, its a cap-weighted fund.
But there are some industry experts who argue that equal-weight funds can provide better long term returns.
Before diving into the pros and cons of each, let’s start with some basic definitions of each type of index fund.[Read more…] about Equal Weight Index funds Overview