Monday, July 08, 2013

Equal Weighted S&P 500 Outperforming Cap Weighted S&P 500 Index

The equal weighted S&P 500 Index ETF, RSP, continues to outperform the capitalization weighted S&P 500 Index on a year to date basis. The equal weighted index maintains a higher weighting in the smaller cap companies in the S&P 500 Index and small cap stocks (IWM) have been outperforming the larger cap issues this year.

A part of this outperformance may be attributable to the fact small cap companies have less exposure to the international markets, both developing and emerging. Developed and emerging markets have been weaker performers this year as the economic growth rates in emerging markets is slowing. Developed market economies are dealing with the ongoing effects of eurozone issues.

From The Blog of HORAN Capital Advisors

1 comment :

Hans said...

The overriding concern in using this index, is it's over concentration of Banks..