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Why an Equal-Weight S&P 500 ETF is Outperforming


I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments within the exchange traded fund market.

This week, I looked at the Guggenheim S&P 500 Equal Weight ETF (RSP) .

RSP leans toward mid-cap and small stocks, which have been outperforming their blue-chip counterparts.

Click here to listen to the podcast.

The chart below shows the relative performance of Guggenheim S&P 500 Equal Weight versus the market-cap-weighted SPDR S&P 500 (SPY) , highlighting the recent leadership of the equal-weighted approach.

RSP is up 14.4% the past six months, compared with a gain of 8.9% for SPY.


Full disclosure: Tom Lydon’s clients own SPY.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.