Not exact matches
The
index family will include an equal
weighted index and other
weighting methodologies that will provide
alternatives to market capitalization
weighted indices.
The VanEck Vectors Global
Alternative Energy ETF tracks a market - cap - weighted index of companies that derive at least 50 % of their revenues from alternat
Alternative Energy ETF tracks a market - cap -
weighted index of companies that derive at least 50 % of their revenues from
alternativealternative energy.
In another reduction of
alternative indexes that use different valuations and business fundamentals to
weight companies, Claymore Advisors is seeking to switch an existing exchange - traded fund to a more traditional market - cap size
weighted benchmark.
* Strategic beta refers to investment strategies that emphasize the use of
alternative weighting schemes to traditional market capitalization - based
indexes.
I limit my processed carbohydrates so this is a wonderful
alternative to traditional pasta which has a high glycemic
index — higher GI foods are broken down into sugar quickly and contribute to spiked insulin (which in turn results in
weight gain and a host of other health problems).
Another
alternative strategy is equal
weighting, or assigning the same fixed allocation to every stock in the
index.
Given the relatively strong performance of small caps with rising rates, inflation, GDP growth and the falling dollar, now is an interesting time to examine the
alternative weighting index performance from the market capitalization
weighted indices.
Cap -
weighted indexes or some
alternative?
«There's been more of a burgeoning industry around smart BETA (ETFs that use
alternative index rules, as opposed to being cap
weighted) and quant strategies,» he added, in an interview.
In sum, we believe that strategic beta portfolios can help meet the needs of investors who desire
alternatives to traditional cap -
weighted indexes.
Strategic beta represents an
alternative to market cap -
weighted indexes with many different approaches
The goal is to achieve an
alternative risk - return profile which is more attractive than a simple capitalization -
weighted index such as the S&P 500.
The goal is to achieve an
alternative risk - return profile, which is more attractive than a simple capitalization -
weighted index such as the Russell 2000.
The article recommends considering factor - based strategies versus traditional market - cap
weighted indexes as an
alternative for investors interested in gaining exposure into middle capitalization stocks, highlighting ProShares» REGL.
If you believe that the market offers better opportunities to those who focus on value, growth or income, then investing in funds and ETFs based on fundamentally
weighted indices may be a good
alternative for you.
Also known as «
alternative indexing» or «smart beta,»
alternative -
weighted investments are typically ETFs that — like traditional
index funds — try to replicate a specific
index.
Arnott et al seek to create
alternative indices that as efficient «as the usual capitalization -
weighted market
indexes, while retaining the many benefits of capitalization -
weighting for the passive investor,» which include, for example, lower trading costs and fees than active management.
The second strand involves a push to adopt
alternative systems for
weighting the stocks held within an
index fund.
The authors also identify rebalancing's influence on popular current
alternative index strategies, such as equal
weighting, diversity
weighting, maximum diversification, fundamental
weighting, and minimum variance.
An equal
weighted index is the first of two
alternative weightings used in smart beta funds.
The past few years, several fund companies started offering
alternative weighted index funds.
Cap -
weighting may not be optimal, and if you're truly committed to an
alternative indexing strategy, I won't try to talk you out of it — as long as every other piece of your financial plan is in place.
Given that a market - cap -
weighted index fund offered investors a low - cost, market - return alternative to active equity management beginning in the mid-1970s, investors received yet another game - changing boost, roughly 30 years later, with the introduction of the RAFI Fundamental I
index fund offered investors a low - cost, market - return
alternative to active equity management beginning in the mid-1970s, investors received yet another game - changing boost, roughly 30 years later, with the introduction of the RAFI Fundamental
IndexIndex.
In part to address some of the drawbacks of cap -
weighted indexes, a number of
alternative index structures have since sprung up.
Alternative weighting is mainly what drives the smart - beta concept -
indexes are no longer all about market capitalization.
«As part of the program, investors now have greater access to two of our comprehensive factor ETFs, which are intended to serve as core portfolio allocations as well as
alternatives to traditional market cap
weighted domestic and international
index products.»
Read more to gain an understanding of this
alternative approach to market cap -
weighted index investing.
The project analyzed the performance of the CPGI's Problem Gambling Severity
Index (PGSI) in three large population datasets and examined the viability of
alternative scoring and
weighting schemes.