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SPDR S&P 500 ETF Trust (SPY $645.05)
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Invesco S&P 500 Equal Weight ETF (RSP $188.62)
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Invesco S&P 500 Equal Weight Index ETF (EQL $39.31)
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Direxion Nasdaq-100 Equal Weighted Index Shares (QQQE $98.05)
Q: Hi 5i Team,
Based on the webinar that Chris presented it appears that the equal-weight S&P 500 has lagged compared to the market-weight S&P 500. Based on this I suspect you would recommend having some exposure to the equal-weight S&P 500? If so, what would be a good ETF that you would recommend or are there any individual stocks within the equal-weight S&P 500 that you think might have a bit more upside than the average?
Thanks as always,
Jon
Based on the webinar that Chris presented it appears that the equal-weight S&P 500 has lagged compared to the market-weight S&P 500. Based on this I suspect you would recommend having some exposure to the equal-weight S&P 500? If so, what would be a good ETF that you would recommend or are there any individual stocks within the equal-weight S&P 500 that you think might have a bit more upside than the average?
Thanks as always,
Jon
5i Research Answer:
Since the RSP ETFs inception in 2003, it has outperformed the S&P 500 ETF (SPY) by a total of 37%. Since its inception, RSP has a total return CAGR of 11.2% while the SPY has a total return CAGR of 11.0%. This is a pretty strong track record, and given the discrepancy in valuations and year-to-date returns, we like the probabilities of the equal-weight indices performing well going forward.
For US dollars, we like the RSP ETF or the QQQE for the Nasdaq 100, and for Canadian dollars, we like EQL.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in SPY.