Weighting By Growth Rate vs Market Cap Increased Simulated Excess Returns

Traditional indices might weight stocks by market capitalization, potentially rewarding popularity and higher valuations. This clip introduces an alternative. Weighting by the dollar magnitude of growth.

By aligning portfolio weights with real economic contribution, this approach has improved returns and better captured the drivers of growth in backtests.

This clip is from the "Growth vs Glamour: Rethinking What Drives Equity Returns" webinar featuring Rob Arnott, Founder and Chairman of Research Affiliates.

Watch the full webinar: https://na2.hubs.ly/H05qpJ_0
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Видео Weighting By Growth Rate vs Market Cap Increased Simulated Excess Returns канала Research Affiliates