Equal weighting is structured in order to give all members of the index an equal representation and also reduce the “mega cap” and “value” bias that may be present in market cap weighted indexes.
How has this methodology fared against market cap? The word “impressive” is likely an understatement. Since RSP’s inception in May of 2003, the ETF has returned 77.76% versus SPY gaining 33.35%. Year to date however, RSP is lagging somewhat, down 2.41% versus SPY down 1.14%.
Rydex S&P 500 Equal Weight
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