BET­TER TO OPT FOR EQUAL­WEIGHTED IN­DICES

Finweek English Edition - - SIMON SAYS -

Stan­prop, the Stan­lib prop­erty ex­change-traded fund (ETF), pub­lished a Sens on the re­bal­anced port­fo­lio. The ETF tracks the SA Listed Prop­erty (SAPY) In­dex so it’s just re­bal­anc­ing to re­main in sync with the in­dex. But what struck me was that, be­ing a mar­ket cap in­dex, just three stocks – Growth­point, Hyprop and Re­de­fine – make up over 47% of the SAPY’s 22 stocks. This is why I far pre­fer equal-weighted in­dices and in the prop­erty space we have CoreShares PropTrax Ten (PTXTEN)*, which in­cludes the 10 largest prop­erty stocks at 10% weight­ing each.

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