Looking at the S&P 500 components by market value, smaller companies have helped contribute to RSP’s outperformance. About 132 companies with a market value of less than $10 billion have surged 14.2% since the February lows. In comparison, the 41 companies with a market value of over $100 billion showed a 7.1% return since the lows.
The equal-weight methodology also changes up RSP’s sector weights relative to the S&P 500. RSP top sectors includes 17.0% financials, 16.8% consumer discretionary and 13.3% industrials while SPY holds 20.5% tech, 15.8% financials and 14.7% health care.
Additionally, looking at ETFs that target the smaller asset categories, the iShares Russell 2000 ETF (NYSEArca: IWM), which tracks small-cap stocks taken from the Russell 2000, advanced 10.7% and the iShares Core S&P Mid-Cap ETF (NYSEArca: IJH), which includes mid-cap stocks taken from the S&P MidCap Index, rose 9.6% since the February low.
Guggenheim Equal S&P Weight ETF
Max Chen contributed to this article.