I don't see the fundamental distinction between this and a S&P 500 index fund. Instead of carrying out one rebalancing (at whatever frequency) there's now two rebalacning steps -- one at the sector level and then another one to account for market cap changes within the sector. The net result of either strategy looks to be an imperfectly realized approximation of the performance a continuously adjusted market cap weighted portfolio of those 500 stocks.
Is the claim that this is somehow a better approximation? Are there some tax loss harvesting benefits? What am I missing?
Is the claim that this is somehow a better approximation? Are there some tax loss harvesting benefits? What am I missing?