Market-cap-weighted indexes have their benefits. Funds that track cap-weighted indexes cut back on turnover and the related trading costs. They also grasp the market’s collective opinion of each stock ...

The rise of the "mega-caps" in recent years has caused a significant divergence in the performance of the S&P 500. The cap-weighted S&P 500 has posted a total return of just over 110% over the last ...

Equal weighting, or assigning all stocks in an index the same weight, is one of the oldest alternatives to weighting stocks by market capitalization. It might also still be one of the best ...

Concerns about the degree of concentration in market capitalization-weighted indexes like the S&P 500 seem to be prevalent whenever performance is dominated by mega-cap names — as it has been recently ...

Market-capitalization-weighted indexing is a great strategy for many investors. But like any great strategy, it has experienced and will continue to experience periods where it looks like a bad idea.

ITOT is a low-cost total market fund representing approximately 4,000 U.S. securities. It's marketed to passive investors and has $58 billion in assets under management with a 0.03% expense ratio.

Cap-weighted funds focus on large companies, impacting fund performance and risk. These funds often feature lower expense ratios due to minimal trading requirements. Consider your investment strategy ...

Investors playing the odds tend to invest in passively managed index funds, growing their wealth patiently alongside the expanding U.S. and global economies. A passively managed fund is when ...