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Strategies & Market Trends : CFZ E-Wiggle Workspace -- Ignore unavailable to you. Want to Upgrade?


To: Saulamanca who wrote (40081)1/22/2024 2:51:37 PM
From: skinowski  Respond to of 41470
 
I was never into equal weight ETF’s - so, not much in a way of personal experience. I tried to check their relative performance compared to SPY - they are similar.

Intuitively, actually, the cap weighted ETF gives more exposure to the strongest, most successful companies. I doubt that this is a disadvantage - but this depends on the markets. People noticed that after a major bear market, the leadership of the new Bull often changes. If so, equal weight “may” have an advantage. But, Big Bears are uncommon.

If you compare long term performance of SPY vs. RSP, they’re very close.