Let's see how things are coming along one month on after the mid-year distributions made by many of the ETFs in the two portfolios. Here is what has happened:
- on pure market price changes before distributions, the fundamental portfolio is ahead by $244 as of market close today July 7th;
- the cap-weight portfolio received slightly more - $554 vs $508, or $46 more - in distributions mainly because ZRE in the fundamental portfolio paid out none at all. The folks at BMO who run the ZRE ETF told me that since the fund was only launched at the end of May, there was very little income received up to the end of June and they decided it would be included in next quarter's distribution at the end of September. On a total net basis the fundamental portfolio is still better off by $197.
Though it is early days, so far so good for fundamental weighting. No regrets yet about making the change in my portfolio.