Despite the dominance of traditional market cap weighting, the evolution of indexing shows a shift towards custom strategies.
There has been an expansion beyond traditional market cap weighted indices as indices were originally conceived as benchmarks to represent markets, not necessarily offer the optimal way to invest in markets. Performance of market cap weighted, and equally weighted indices clearly differs in the short term However, over time, there has been increased understanding of different ways to invest, as well as technological advances enabling alternatives to market cap weighting. “Core options