If you believe in equal weighting, then you likely believe in factors, since they explain the difference in return between equal weight and market cap weighted funds.
And if you believe in factors, you'd quickly realize that equal weighting is just a bad value factor fund, and that you'd be better off using a real factor fund with a heavier value tilt. This way you can allocate a smaller percentage of your portfolio to this tilt, resulting in reduced costs and more simplicity, both of which are the Boglehead way.
And if you believe in factors, you'd quickly realize that equal weighting is just a bad value factor fund, and that you'd be better off using a real factor fund with a heavier value tilt. This way you can allocate a smaller percentage of your portfolio to this tilt, resulting in reduced costs and more simplicity, both of which are the Boglehead way.
Statistics: Posted by rushrocker — Thu Oct 24, 2024 11:42 pm — Replies 16 — Views 565