"I read David's comments on ETFs on Monday - Fundamental ETFs are potentially far better than traditional ETFs as they overcome the problems David refers to and I have a PDF note explaining the ins & outs of F. ETFs if that is of interest to you or David."

Eoin Treacy's view Thank you for this informative report which I'm sure will be of interest to subscribers. I posted a much less detailed article expressing a similar view in Comment of the Day on October 2nd 2009.

Fundamentally oriented ETFs help to avoid concentrating one's portfolio in the most popular, and often most overvalued, shares in an index, making them more attractive from the perspective of a medium to long-term investor.

Such indices generally tend to fall into equal weighted, dividend weighted or some form of quantitative weighting. At present, I only know of ETFs offering alternative weightings for the US market. If subscribers know of any covering Europe or some of the Fullermoney themes I would be happy to add them to the Chart Library.

I updated this rebased chart of a number of alternatively weighted ETFs compared to the S&P500. It demonstrates that the Rydex S&P Equal Weight ETF (RSP) and the Powershares FTSE RAFI US 1000 Portfolio (PRF) have outperformed the S&P 500 by a considerable margin. The RevenueShares Large Cap ETF (RWL) and the PowerShares Dynamic Market ETF (PWC) performed more or less in line with the S&P 500.