A Different Breadth View

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The ETF symbol SPY is the granddaddy of them all. It’s the oldest, most heavily-traded, and best-known. There is a very similar fund, however, with the symbol RSP, which also represents the S&P 500. Its difference, however, is that its calculation is based on the equal-weighted S&P 500, as opposed to the “normal” S&P which heavily favors the mega-caps.

(Click on image to enlarge)

As shown in the chart above, the SPY (blue line) has massively outperformed the RSP (black line) over the past couple of years. This simple difference in weighting yields about a two-fold difference in performance, because the mega-caps are carrying so much weight.


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