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What Are Equal-Weight Index Funds?

By Catherine Brock – Updated Jun 11, 2025 at 3:42AM

Key Points

  • Equal-weight funds offer similar long-term returns as cap-weighted but higher volatility and expense ratios.
  • Equal-weight strategy avoids over-concentration in large cap stocks, reducing bias toward dominant sectors.
  • Recent performance shows cap-weighted funds outperform when large tech companies lead market growth.
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