Hey guys,
Doing some research for my master thesis and came across this interesting topic. With the praise passive index investing receives here on r/investing I'm curious so hear some opinions on this variant of indexing.
The idea is simple, with normal indexing you overweight on expensive stocks which leads to excess exposure to certain sectors.
If you want a quick example, compare ticker RSP with SPY, where RSP beats SPY with more then 5% on a 5 year basis.
More information in this paper from McGraw hill financial: http://ift.tt/2hYINZC
Or this recent article from forbes:http://ift.tt/2jcS38Q
Submitted January 06, 2017 at 02:22PM by Anarch1st1 http://ift.tt/2hYIPRe
