Q: I recently read your article "Cap-Weight vs Equal
Weighted Indices" in etf-mutual fund letter which generally concluded that equal weighted etf's out performed cap weighted etf's. However, I'm wondering if this is still true if higher MRE's and higher taxes (due to higher turnover) are taken into account. In other words what's the after tax comparison, say if you were in the 40-50% tax bracket? Do you have some idea or do you know some studies on this?
Thanks
Weighted Indices" in etf-mutual fund letter which generally concluded that equal weighted etf's out performed cap weighted etf's. However, I'm wondering if this is still true if higher MRE's and higher taxes (due to higher turnover) are taken into account. In other words what's the after tax comparison, say if you were in the 40-50% tax bracket? Do you have some idea or do you know some studies on this?
Thanks