[im3w1l]

>equal weighting will outperform cap weighting due to the small cap effect

Just because the sector is big doesn't mean the companies in that sector are big.

[pyguysf]

The small cap effect has nothing to do with sectors.

If the sector is big because it has a lot of medium/small sized constituents you gain from this implementation because a cap weighted index would under allocate to these smaller names.