Wealthnewshubb
Advertisement Banner
  • Home
  • News
  • Management
  • Contact
No Result
View All Result
  • Home
  • News
  • Management
  • Contact
No Result
View All Result
Wealthnewshubb
No Result
View All Result
Home Management

Benefits of the Equal-Weight S&P 500 – Validea’s Guru Investor Blog

admin by admin
April 29, 2023
in Management




Investors seeking exposure to the U.S. stock market often turn to traditional S&P 500 index funds, which are weighted by market capitalization. However, this approach can lead to concentration risk, as a significant portion of the index’s value is concentrated in its largest holdings. As an alternative, investors might consider the Invesco S&P 500 Equal Weight ETF (RSP), which equally weights all stocks in the S&P 500 index, thereby reducing concentration risk. According to an interview with Nick Kalivas on MarketWatch.com, RSP has outperformed the SPDR S&P 500 ETF Trust (SPY) over three-year, 15-year, and 20-year periods, while SPY has outperformed over five and 10-year periods.

Kalivas also noted that smaller names in the S&P 500 have historically tended to outperform larger ones, a trend that is captured by RSP’s equal-weight strategy. Additionally, RSP’s quarterly rebalancing provides a value tilt to the portfolio. This information suggests that RSP offers a lower-risk approach to investing in the S&P 500 while still delivering competitive performance over the long term (MarketWatch).




Source link

Previous Post

Money Robot Review 2023

Next Post

Seven Steps to a Successful Client Event

Next Post

Seven Steps to a Successful Client Event

Recommended

First Republic Stuck in Standoff Between US, Bank Industry

1 month ago

A Passion for Suicide Prevention With Larry Sprung

10 months ago
wealth-01

© Wealth News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • News
  • Management
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • News
  • Management
  • Contact

© 2022 Wealth News Hubb All rights reserved.