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The Drawback Of Market-Capitalization Weighted Indexing

FYI: Market-weighted indexes may end up over-exposed to expensive investments, and underweight more attractively valued ones. That can be a problem. Of course, there are advantages to the approach too. First off, passive investing can often cut you expenses, and that typically helps performance. Secondly, many stocks do fall to zero over time, but indexing, based on market capitalization, tends to steadily reduce exposure to failing companies and increase exposure to growing ones, assuming these trends persist over time. Also, indexing is a straightforward approach to both understand and implement. However, the main risk that comes with market-capitalization weighted index tracking is worth noting.
Regards,
Ted
https://www.forbes.com/sites/simonmoore/2018/12/26/one-drawback-of-market-capitalization-weighted-indexing/?ss=etfs-mutualfunds#60974a8e60fc
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