- Researchers have long compared the performance of equal- and market cap-weighted equity strategies, but no clear consensus has emerged on which is preferable.
- Of the 18 worst stock market crashes between 1926 to 2021, some, like the 1987 plunge, were short in duration while others were long bear markets that extended for well over a year.
- Although the risk is similar when comparing the drawdowns, smaller companies tend to be a bit more volatile than their larger peers.
For further details see:
Equal- Vs. Market Cap-Weighted Portfolios In Stock Market Crashes