Equal weighted making a comeback

Troy Bombardia

2020-10-22

The equal-weight S&P 500 has jumped relative to the capitalization-weight version of the index over the past 2 months, and that's usually meant it will continue to do so.

As Bloomberg noted, the S&P 500 equal weighted index is trying to make a comeback after years of underperformance. The equal weighted index is on track to outperform the market cap weighted S&P 500 by more than 1.2% for 2 months in a row:

This is the first time this has happened in more than 7 years. When this happened in the past, the S&P 500 equal weighted index usually pushed higher over the next 3 months...

...whereas the S&P 500 market cap weighted index did not perform that well over the next 3 months:

As a result, the equal weighted S&P 500 usually outperformed the market cap weighted S&P 500 over the next 6+ months:

Sorry, you don't have access to this report

Upgrade your subscription plan to get access

Go to Dasboard