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Arnott: Why Cap-Weighted Indexing Is Flawed

A capitalization-weighted index explicitly links the weight of a holding to its price, so the more expensive a stock gets, the bigger its weight in your portfolio, says Research Affiliates' Rob Arnott.

Arnott: Why Cap-Weighted Indexing Is Flawed

Rob Arnott: What I'd like to do is to talk about "Smart Beta, Monkeys and Upside Down Strategies."

Monkeys like to hang out upside-down, so why shouldn't we turn our smart beta strategies upside down and see how they do.

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