marchaase

Hi, All,

I'm in the midst of deciding how to allocate my investment portfolio in a taxable account using equal-weight ETFs or low-cost market-cap index funds for a buy-and-hold strategy. Two financial advisors I recently spoke with recommended equal-weight ETFs (in a general sense), because, in theory, it's better to have an equal representation of equities that constitute a market index. But I'm not interested in theory – I'm curious how equal-weight ETFs actually perform relative to low-cost index funds. Everything I have been reading suggests that equal-weight ETFs outperform index funds in bull markets, but I can't find data on bear markets. Moreover, I'm not sure if the studies which suggest equal-weight ETFs outperform low-cost index funds account for fees, taxes, and the ability to automatically re-invest dividends.

Any insight from investors who have built a portfolio around equal-weight ETFs relative to low-cost index funds? Or visa versa?

Thanks.