Market Weight vs. Equal Weight ETFs in 2012

One of the biggest characteristics of the US stock market this year is the outperformance of market weight indices versus their equal weight counterparts.  In the chart below, we show the year-to-date (YTD) performance of IVV (iShares S&P 500 Index Fund) and RSP (Guggenheim S&P 500 Equal Weight ETF).  Currently, IVV is leading by about 2% this year, and you can see that the market weight focused ETF really diverged from its equal weight counterpart off June's correction bottom.  Furthermore, in the table below the chart, we've included the YTD performance of the market weight and equal weight ETFs covering the S&P 500 (large-caps), the S&P 400 (mid-caps), the S&P 600 (small-caps), and the 9 major sectors.  In the data presented, you can see that currently only the equal weight Healthcare and Utilities ETFs are outperforming the equivalent market weight funds, which truly highlights the significance of this year's performance trend.
Justin Wood
If you are a subscriber to, click here to read our recent reports.  If you would like to learn more about the research and commentary offered by Hays Advisory, click here.
Please see important disclosures at the bottom of this page.