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The pros and cons of equal-weighted ETFs

They provide diversification and rebalancing benefits over cap-weighted ETFs, but come with higher fees and volatility, says Invesco Canada's Christopher Doll.

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Christian Charest: For Morningstar, I'm Christian Charest. There are many ways in which index providers and the ETFs that track them have tried to improve on the performance of traditional indexing. These strategies are often called smart beta, while here at Morningstar we prefer the term strategic beta. By far, the simplest of these approaches is equal weighting, and I'm here today with Christopher Doll, Vice President of ETF Sales and Strategy at Invesco Canada, to talk about the pros and cons of that approach.

Christopher, thanks for joining us today.

Christian Charest does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.