FYI: The Invesco S&P 500 Equal Weight ETF (RSP) sparked controversy when it was introduced as the first equal-weighted index exchange-traded fund in 2003. Who dare challenge the idea of building portfolios with anything but traditional market cap-weighted funds! That was the counterargument by indexing purists against a new breed of funds that allocated holdings differently then simply by a company’s market size.
Few observers could’ve predicted the ensuing avalanche of alternative-weighted funds within the ETF marketplace that the RSP fund would spark. Besides equal-weighted funds, there is a multiplicity of alternative weighted ETFs based on dividends, revenue, reverse market cap-weighted strategies and more.
Regards,
Ted
https://www.fa-mag.com/news/tilting-your-exposures-with-relative-weight-etfs-52485.html?print
