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Daily Report : Equal-weighted versus cap-weighted - Part I

by Sentimentrader
2025-09-23
The capitalization-weight version of the S&P 500 index has vastly outperformed the equal-weight version in recent years. Many pundits spend a lot of time predicting when this relationship will reverse. Herein, we detail a more useful trend-following approach to trading these indexes.
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Headlines

Equal-weighted versus cap-weighted - Part I: The capitalization-weight version of the S&P 500 index has vastly outperformed the equal-weight version in recent years. Many pundits spend a lot of time predicting when this relationship will reverse. Herein, we detail a more useful trend-following approach to trading these indexes.

Smart / Dumb Money Confidence

Smart Money Confidence: 41% Dumb Money Confidence: 70%

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Research

Equal-weighted versus cap-weighted - Part I

By Jay Kaeppel

BOTTOM LINE
The capitalization-weight version of the S&P 500 index has vastly outperformed the equal-weight version in recent years. Many pundits spend a lot of time predicting when this relationship will reverse. Herein, we detail a more useful trend-following approach to trading these indexes.

FORECAST / TIMEFRAME
None

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% Showing Optimism: 49%
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