Beat the S&P 500 by Investing in the S&P 500
I saw this article in the January issue of Active Trader Magazine: “Trading a different S&P 500: The RSP vs. the SPY“. The RSP ETF contains the same 500 stocks that make up the S&P 500 but they are equally weighted as opposed to the S&P’s capitalization weighting. The interesting part is that the RSP has been outperforming the S&P 500. Here’s a quote from another article about RSP:
Most investors would agree that just because a company is bigger doesn’t mean that it is a better investment. Let’s look at the most well-known index, the S&P 500, and its well-known ETF, the SPDR. Many investors think that investing in the …
tagged: Equally-Weighted-Index, ETFs, Market-Cap-Weighted-Index, Rydex-S&P-Equal-Weight-ETF-(RSP), S&P-500, S&P-500-Index-SPDR-(Spiders---SPY) and Stock-Index-Composition
