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: 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
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