Talking ETF Weighting Methodologies With Tony Davidow

Recently, we sat down with Tony Davidow the Managing Director-Portfolio Strategist at Rydex SGI at our headquarters here in Chicago. In Tony’s current role, he has helped to spread the word on ‘alternative’ weighting methodologies beyond the traditional market-cap weighted system that most benchmarks use today. In this interview, we discuss why market cap weighting has been so popular up to this point and why equal weighting may make sense for some investors. ETF Database (ETFdb): Why has market cap weighting historically been dominant as benchmarks for mutual funds, and more recently the underlying index for ETFs? Tony Davidow (TD): We have grown up in a world where we look at the cap weighted benchmarks as the de facto “market portfolio.” We would challenge that notion, and suggest that there are different ways of owning the market. There is a fair amount of academic literature challenging the norm [see some [...] Click here to read the original article on ETFdb.com. Related Posts: Rydex Launches Equal Weight ACWI ETF (EWAC) For ETF Investors, The Details Matter December ETF Roundup: Launches, Filings, and Closures Ten Commandments Of ETF Investing Six Reasons To Consider Dumping SPY