Demystifying Equal Weighting

MSCI Research Insights, June 2012

12 Pages Posted: 31 Dec 2014

Date Written: July 31, 2012

Abstract

The idea of accessing risk premia through the use of index-based funds and ETFs has been gaining momentum in recent years. MSCI Risk Premia Indices aim to reflect well-known equity premia to stock characteristics such as value, size, or momentum. Among the risk premia indices, equally-weighted indices are some of the oldest and most well-known. In this paper, we revisit the rationale behind equal weighting and profile their recent performance.

Suggested Citation

Bender, Jennifer, Demystifying Equal Weighting (July 31, 2012). MSCI Research Insights, June 2012, Available at SSRN: https://ssrn.com/abstract=2543983 or http://dx.doi.org/10.2139/ssrn.2543983

Jennifer Bender (Contact Author)

State Street Global Advisors ( email )

1 Lincoln Street
28th Floor
Boston, MA 02111
United States

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