RSP Just Keeps Plugging Along

Thanks in part to the rise in popularity of exchange-traded funds in recent years, debate over the relative merits of various strategies for building and maintaining indexes has intensified considerably. The ETF boom has accelerated the transformation of benchmarks into investable assets, prompting investors to consider the impact of index nuances on the risk/return profile of their ETF investments. Many of the most popular ETFs are linked to market capitalization-weighted indexes that assign the largest weightings to the most valuable companies. But despite the widespread use, cap weighting has repeatedly come under attack as a flawed means of achieving equity exposure–an argument that has some investment heavyweights on both sides. Alternatives Galore The growth in ETF usage has also given investors multiple alternatives to market cap weighting. In addition to active ETFs, investors have the choice of products linked to indexes that employ dividend-weighted strategies, revenue-weighted techniques, and even the [...] Click here to read the original article on ETFdb.com. Related Posts: ETF Filings: Real Return, Equal Weighting, Mortgage REIT Funds On Tap Talking ETF Weighting Methodologies With Tony Davidow Rydex Launches Equal Weight ACWI ETF (EWAC) For ETF Investors, The Details Matter Ten Commandments Of ETF Investing