The S&P 500 Equal Weight Index is Falling Further Behind

What We’re Showing

This graphic compares the performance of the S&P 500 to the S&P 500 Equal Weight Index (EWI) over the past five years, using two representative ETFs (SPY & RSP).

SPY is the largest ETF tracking the S&P 500 ($585B in AUM), while RSP is the largest ETF tracking the S&P 500 EWI ($64B in AUM).

What is the S&P 500 EWI? 

The EWI includes the same constituents as the S&P 500, but each of the 500 companies is allocated a fixed 0.2% weight. 

Investors who dislike the higher concentration of tech companies in the regular S&P 500 may prefer the EWI for this reason.

S&P 500 Pulls Ahead

As seen in this graphic, the market-cap weighted S&P 500 has pulled ahead of the EWI since early 2023. This is due to the index’s higher concentration in tech giants like Apple, Microsoft, and Nvidia, which have greatly outperformed the rest of the market.