Sponsored by Charles Schwab
Download the white paper to learn the following key takeaways:
- Over the long term, equities have oscillated between following trends and reverting to mean valuations.
- During trends where winners seem to gain momentum and valuations on select stocks often soar, market cap-weighted indexes have traditionally performed quite well.
- By comparison, periods of mean reversion tend to reward comparatively undervalued stocks and fundamentally weighted index strategies.
- To give investors the opportunity to potentially experience both market environments—trends and mean reversion—Charles Schwab Asset Management, Inc. (CSIM) offers both market capweighted index and Fundamental Index® solutions, enabling a “better together” approach.