The underlying concept was a simple one. RSP would equally weight each of the 500 stocks in the S&P 500 Index, ensuring that the smaller names within the Index were weighted as heavily as the larger names.
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The equal-weight approach was implemented to eliminate the large-cap bias of traditional capitalization-weighted index products. The resulting reduction in concentration risk, combined with a quarterly rebalance, has helped RSP consistently outperform the S&P 500 on a rolling monthly basis since the fund’s 2003 inception.
RSP is available through most broker-dealer firms and on several major no-transaction-fee platforms. Guggenheim Investments is the global asset management and investment advisory business of Guggenheim Partners.