The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

A dealer points to a chart showing the FTSE performance in the past week on a screen on the trading floor of IG Index in London May 6, 2010.
A dealer points to a chart showing the FTSE performance in the past week on a screen on the trading floor of IG Index in London May 6, 2010.
(Kevin Coombs/Reuters)

GMO’s James Montier takes issue with equal-weighted indexes

The highly respected James Montier at global asset manager GMO wonders why investors continue to fall for the “stories offered up by investment managers/alchemists.” Among them: The infatuation with so-called smart beta, or exchange-traded funds that are devised to beat major benchmark indexes, such as the S&P 500.