Rhunzzz

Why Fundamental Indexes Lagged Cap-Weighted in '07

I can't help but think of John Bogle's comment that, over time, growth and value will have their own turns in the financial wilderness (or in the sun), and therefore costs should be the overriding consideration.

The Powershares FTSE RAFI funds are expensive at >70 basis points. The WisdomTree funds are better priced, but they still can't beat Vanguard's <20 basis points. The idea of fundamental weighting makes a lot of sense to me, but those expense ratios make me hesitate.