Very interesting video, thanks! Also I would like to thank you for your videos on the time series analysis. Those helped me a lot in my applied math class this semester
@ritvikmath7 ай бұрын
Great to hear!
@marissarodriguez20977 ай бұрын
I’ve recently started investing and had similar questions about diversifying my portfolio. This was so helpful, thanks!
@ResilientFighter7 ай бұрын
Educational and great videos as always.
@ritvikmath7 ай бұрын
Glad you enjoyed it!
@ep63056 ай бұрын
Market cap weighting also makes index funds much more tax efficient as it removes capital gains for trying to constantly adjust holdings to be equal weighted
@user-jj3we9jv9i7 ай бұрын
Bro, this video is unrelated to me, I am just here to comment and like your video so that the KZfaq algorithm increases your reach. Love your machine-learning math content bro! Great work
@ritvikmath7 ай бұрын
I appreciate that!
@bin4ry_d3struct0r7 ай бұрын
Excellent points!
@Jack-cm5ch7 ай бұрын
I've been saying this for so long. And here it is materialized
@saswattulo20917 ай бұрын
One of the best videio of the year. We need to question more?
@ritvikmath7 ай бұрын
thanks!
@toshiro65897 ай бұрын
I have made a vector autoregresion model for sp 500 using yfinance in python so for every stock i know which stocks have power to predict returns of other stocks an when will that happen. Any investors? 😊
@douglashurd43567 ай бұрын
Would you be interested in doing a video on the Sharpe Ratio Efficient Frontier?
@ritvikmath7 ай бұрын
hey I'll look into it, thanks for the suggestion!
@theusualyt7 ай бұрын
u might enjoy mike green on passive investing, and some related tier 1 alpha presentations put together since I believe it's a hedgeye product/ partner there was one done on that channel that covers some related ideas
@ritvikmath7 ай бұрын
Thanks for the rec!
@mgevirtz7 ай бұрын
For those of you unfamilair with the economics jargon, "weight" means market capitalization or more simply dollar worth of each company. Apple Inc. is thought to be worth more dollaz than Disney.
@ritvikmath7 ай бұрын
Thanks !
@mgevirtz7 ай бұрын
Why would a large or the LARGEST have a high potential for growth? It's usually the smaller things that have the largest upside.
@ritvikmath7 ай бұрын
Certainly not causal and arguably not relevant to the unequal weighting logic I raised. The main logic behind the unequal weighting of the index is that the companies with the highest market capitalizations affect the economy the most, all else held constant.
@SNTZ887 ай бұрын
There are equal weighted SP500 ETFs, for example RSP
@ritvikmath7 ай бұрын
Thanks for bringing that up! Was very interested to have learned about those while researching for this video. Curious how those perform over the long term vs usual s&p
@theprofessionalfence-sitter7 ай бұрын
Of course, there are also the obvious problems that 1. it contains only American companies and 2. it contains only large cap companies. That already makes it inherently less diverse than something like the FTSE Global All Cap Index.
@ritvikmath7 ай бұрын
yes those are good points; there's probably more to say about diversifying beyond large US stocks