
They make several points in favor of Capitalization Weighted Indexes.
- Fundamental Weighted Index funds have higher costs than passively managed Capitalization Weighted Index funds due to higher management fees, higher turnover, and higher operating expenses.
- Because of the forced turnover in the entire fund each time a single company changes its dividend, Fundamental Weighted Index funds are less tax efficient than Market Weighted funds.
- All of the currently know methods of Fundamental Indexation tend to overweight value and small capitalization stocks. These are precisely the sectors that have outperformed during the measurement periods cited in the Fundamental Index research and is the real reason for the outperformance. If large cap or growth begin to dominate, Fundamental Indexation should underperform.
The World Cup Tournament is down to the final eight teams. I have written a small post on the tournament and productivity. Look for it next. Have you followed the World Cup? What are your impressions?






Ah yes, many of us who have followed the World Cup elimination competition have been particularly impressed with the absolutely superb and consistently outstanding quality of beautiful women to whom the Brazilian and Argentine players are married. Have you seen how drop-dead gorgeous so many players' wives are, especially on those two teams? Totally magnificent! Why, it's almost too much for my eyes and heart to take, in any one viewing session. That's the most striking impression I've come away with, while watching the games, since you asked. As for my other impressions, my brother says I can sometimes do a pretty good one of an old fisherman...
Posted by: Bob Hansell | June 28, 2006 6:02 PM | Permalink to Comment