ETF Index ETFs: cap weighted vs equal weighted

Discussion in 'Shares & Funds' started by Zenith Chaos, 31st Jan, 2017.

Join Australia's most dynamic and respected property investment community
  1. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,673
    Location:
    Sydney
    I contacted Van Eck about MVW to ask about their MER of 0.35%. They explained that they have to rebalance every quarter as the shares diverge in price. The cap weighted index huggers on the other hand don't need to rebalance because the ratios are maintained by the definition of the cap weighting.

    Made sense to me. I'm staying in MVW as a way of mitigating risk of over weighting ASX20. I also have VAS and large cap LICs.
     
    Burgs likes this.
  2. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,238
    Location:
    Homeless
    They want money to cover the costs of actually doing something? Outrageous.

    I still hold MVW and have been happy to date. Do wonder when the tears will come, surely there can't actually be something to equal weighting that overcomes the fees
     
    Last edited: 27th Jul, 2019