RSP: Telling Us A Lot About The Market

Diesel
3.25K Followers

Summary

  • Historically equal-weight index has outperformed S&P 500 index but it's been lagging significantly this year.
  • This is mostly because S&P 500's performance has been driven by 5-10 mega caps.
  • This also has implications for the rest of the market such as small caps and mid-caps.

Golden bull and bear on stock data chart background. Investing, stock exchange financial bearish and mullish market concept.

Bet_Noire

Invesco S&P 500 Equal Weight ETF (NYSEARCA:RSP) is an interesting fund. It basically takes all components of S&P 500 index (SPY) and gives them all an equal weight regardless of their market cap, share price, profits, revenues, cash flows. The

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3.25K Followers
I own separate portfolios for separate goals. I have one portfolio where I have nothing but income plays, another portfolio where I have nothing but growth stocks. I also have another portfolio where I run my options plays. I try not to mix different portfolios because they all have different goals and purposes. Sometimes one of my portfolios outperform other times other do. I am a big believer of diversification of not only assets but also methods and investment philosophies. Diversification is not simply buying 20 different stocks, it is applying different methods to different goals that fit to serve an investor's short term and long term targets. I am a "long only" investor and stay away from shorting companies. I will also do a lot of delta-neutral options plays where I will try to benefit from a stock or funds lack of movement. Also a huge fan of options plays and strategies including but not limited to covered calls, iron condors, butterflies, calendar spreads, call-put spreads. I've probably tried every options play there is, sometimes with success, sometimes with failure. At Seeking Alpha, I mostly analyze and write about stocks and funds that I own or I plan on owning. I rarely ever write about a stock or fund I at least don't have intention of owning some day.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RSP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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