Here’s how to invest using a winning strategy that offers a spin on traditional stock index funds

Equal-weighted stock index strategies, which assign the same percentage to each holding rather than weighting by market capitalization, have delivered higher returns than traditional market-cap-weighted funds over a recent measurement period. Equal-weighted approaches require more frequent rebalancing since smaller positions grow and larger ones shrink relative to the equal target. Traditional market-cap-weighted index funds remain the most widely used approach among U.S. investors.

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