This post is by Roger Nusbaum from Random Roger
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My latest post for Alpha Baskets is published and includes the following;
There was one sentence that made me laugh out loud; “Passive investors who want to avoid the overconcentration risk from cap-weighted indexes can buy funds that own equal proportions of each stock in an index …” The idea may be perfectly valid but it is clear to me that the person who decides to switch to an index fund that uses an alternative weighting process is not a passive investor, they are making a very active decision, using what might be a passive vehicle to do it.
And from my page at TheMaven;