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Level 3 Investing Fund choice

dryflower
edited September 2016 in Fund Discussions
I'm reading a book called Level 3 Investing, written by the retiring founder of AAII. In it he touts the superiority of equal weight indexing over market weighted indexes. Specifically he recommends RSP as the vehicle of choice to buy the S+P 500. Fair enough. But I am troubled by the management fee of 0.4%

M* comments that RSP has closely tracked VIMAX which is of course, much cheaper, so it seems like VIMAX would always have a good head start.

Another alternative I have found would be EUSA where you get 619 equally weighted positions instead of 500, which probably won't make a whole lot of difference -- but the management fee here is only 0.15%.

Given this, I really can't rationalize paying up for RSP, but the author has obviously carefully considered and come up with this choice. I would be interested in the thoughts and opinions of you, my esteemed brethren, (are there any girls here?) on this topic.

btw, it is a great book, and I recommend it.

Comments

  • rforno
    If I wanted to go equal weighting, I'd go with BRLIX and its .15 ER, low-turnover offering. Not market capped, not sensational, kind of boring, but that's a good thing for long term investors. :)
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