Quote Originally Posted by Pascal View Post
Each sector weights each stocks depending on market cap, but the 20DMF gives an equal weigt on each sector. Therefore, the sectors that holds XOM and CVX has the wame weight as the dryshipper sector (very tiny sector).

Pascal
Thanks, Pascal, I understand the equal weighting of EV across all sectors, each comprised of different aggregate market caps.

To keep numbers round, say you have a choice of 1000 stocks for 100 sectors out of a population of 10,000 stocks of *different* market caps. If I were to draw a different representative subset of stocks for each sector (on average, only a 1/10th of the overall population will be utilized) and then calculate the equally-weighted EV (or 20DMF), would I possibly get drastically different results?

Trader D