Now, Try Slicing the Stock Market Into Equal Pieces

johnN

https://www.nytimes.com/2020/01/17/business/stock-market-index-equal-weight.html

Now, Try Slicing the Stock Market Into Equal Pieces

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Index fund investing is already immensely popular. But is it time to consider funds that construct indexes differently?

Equal-weighted funds tend to be “more expensive, smaller in size and trade less frequently than the cap-weighted alternatives,” he said. The diversification they provide outweighs those drawbacks, in his view, “but they are things for investors to keep in mind.”
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Old_Skeet

The equally weighted oef that I like that is comprised of the top 100 US companies is VYCAX (Corporate Leaders 100 Fund). I have owned this fund off and on over the past ten years, or so, and have at times used it as one of my spiff (special investment) positions. One of the reasons I like this fund is that it usually has a good distribution yield. Last year its distribution yield was 9.3% which includes capital gain distributions. Although, it is an equity fund I consider it an income generating fund as well. Not only will it grow your principal through the years it will put some spiff in your poscket if you take all distributions in cash as I do.

Another equally weighted oef that I have used in the past as a spiff position is VADAX (Equally Weighted S&P 500 Fund). It has had some good distribution payouts as well; but, generally, lower than what VYCAX produces.