Tag Archives: capitalization weighting
Capitalization and Its Discontents
Last week, readers of the Financial Times were regaled by suggestions that capitalization-weighted index funds were “hugely biased,” “undiversified,” and “too trusting of the market’s judgment on a handful of very large stocks.” Criticisms of cap weighting aren’t new, of course, and at least in the near term seem not to have been very effective…
- Categories Equities
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Bond Funds Unbound
Yesterday’s Wall Street Journal offered a profile of fixed income investors who aim to “break [the] chains” by which they are supposedly confined by index benchmarks. As the bond market falters, investors are seeking shelter in funds that aren’t tied to indexes. These bonds funds are known as “unconstrained,” “go-anywhere,” “absolute return” or “flexible” funds,…
- Categories Equities, Fixed Income, Strategy
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