We appreciate that many investors will be willing to bet on the long-run excess performance of value tilt strategies, through either the RAFI or through a combination of ETF’s. But we have presented longer-term evidence that should caution investors from dramatically shifting the indexed core holdings of their portfolios away from capitalization weighting. As historical data clearly show, the dissected value and growth components of the market have for decades had a tug-of-war of outperforming each other. Over the past 30 years “value” stocks have enjoyed substantially superior performance. But in the current market environment, the.
