EXHIBITS:
Figure 1: S&P 500 Equal Weight Index – Sector Composition through time
Figure 2: Russell 1000 Sector Allocation Comparison
Important Information
The Russell Global Sector classification system categorizes stocks into nine sectors: technology, health care, consumer discretionary, consumer staples, energy, materials and processing, producer durables, financial services and utilities.
As the index rebalances back to base weights, it increases weight in those sectors/stocks that have decreased in price while decreasing weight in those sectors/stocks that have increased in price — thus contra-trading against recent market movements.
The S&P 500 Equal Weight Index is the equally weighted version of the S&P 500 Index. The S&P 500 Index is an unmanaged index considered representative of the US stock market.