To be honest, I don’t know 
If it’s a general question like ( what sort of mesh, do I need physics on a weapon etc ), then I’d repost with that as you query. I’m sure there’s a lot of people who would like to chip in on that.
Did you ever get the sword working? 
Which to use is not my question. The sword keeps dropping, bouncing off the ground once, tipping over, then falling through the floor. I was asking if what I was using (skeletal or static mesh) has anything to do with it falling through the floor. I have tried everything you suggested but nothing has worked yet to just let it fall to the ground normally.
I have no idea, sorry. Usually enabling CCD does the trick.
Make sure that asset that you are turning “simulate physics” for is above “Kill Z” value. After fixing value it is working correctly for me