Equal weight indexing: five years later Srikant Dash, Keith Loggie. The authors note that most indices created in the wake of the S&P 500, that is, since 1957, are capitalisation weighted, as recommended by the capital asset pricing theory and the efficient market hypothesis. At the same time, there has been controversy about the degree of efficiency of the market. In other words, a broad capitalisation-weighted index may not be the most efficient investment. This consideration has led to the development of indices using alternative weighting methodologies. The simplest of these is the equal-weighted index. More...