What potential drawback is associated with equal-weight index funds? Option: "They overemphasize large-cap stocks, leading to a lack of diversification.", "They tend to have lower expense ratios due to reduced transaction costs.", "They may underperform in volatile markets compared to funds with a higher concentration of blue-chip stocks.", "They fail to adapt to stock splits and mergers, leading to imbalanced allocations."

What potential drawback is associated with equal-weight index funds?

Which of the following is a key advantage of equal-weight index funds?

How do equal-weight index funds address the limitations of market-cap-weighted funds?

What is a potential drawback of investing solely in index funds?

What is the core principle behind equal-weight index funds?

What is a potential drawback of balanced funds compared to pure equity funds?