EQUAL-WEIGHT INDEXES
The 'tourist explains why this edge exists and the difficulties in exploiting it
There are few investing edges that last. If it is an arbitrage, eventually others figure it out and drive returns down. Back in the 1990s, I figured out how to automate the inter-listed arb between stocks that were listed both on the Toronto Stock Exchange and the New York Stocks Exchange or Nasdaq. According to efficient market finance theory, our SUN …