Day: January 26, 2026

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The Problem with Equal Weight Index Funds

I can see the desire to own equal weighted funds, especially as they get you more small caps when thee magnificent seven are dominating the market and over weighting index funds, but I think a lower fee small cap index fund is a better way to correct for such imbalance with less turnover than a true equal weighted fund. That said, a lot of small caps are that way because they have slow growth, are in dying industries and have limited prospects for growth. But I do have some investments in small cap funds just like I do some investments in energy sector stocks as a hedge against energy inflation pulling down the market as a whole. But they are not a large part of my portfolio as they're risky and kind of side bets.