Apr 2 in Our Research
S&P vs S&P EQUALLY WEIGHTED
The relationship between the S&P 500 and its equally weighted counterpart has been a topic of interest among investors. While both track the same stocks, their weighting methodologies differ. The S&P 500 is market-cap-weighted, while the S&P Equal Weighted Index assigns equal weight to each stock.
Over the past two years, from 2022 to 2024, there has been a notable shift in the performance dynamics of the S&P indices. In contrast to the preceding decade, where the S&P Equal Weighted Index often outperformed its counterpart, the S&P 500, the recent trend has seen a reversal. During this period, the S&P 500 has exhibited notably stronger performance compared to its equally weighted counterpart. This divergence underscores the evolving market dynamics and could be largely attributed to the exceptional growth and performance of giant technology companies, fuelled by the recent advancements in the AI space.
Would like to replicate the analysis? Check the resources below:
DataLab: https://lnkd.in/dxxYcHb9
Code available at: https://lnkd.in/ddzFpAxQ
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S&P vs S&P EQUALLY WEIGHTED
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