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Avoid Concentration Risk in These Sectors

Friday, March 31, 2023 12:09

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An equal-weight ETF is particularly impactful in the sectors with the highest concentration risk.

An equal-weight strategy can reduce concentration risk by weighting each constituent company equally so that a small group of companies does not have an outsized impact on the index.

Source: https://etfdb.com/portfolio-strategies-channel/avoid-concentration-risk-in-these-sectors/

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