ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Portfolio Strategies Channel
  2. In October Equal Weight Outperformed S&P 500 by 2%
Portfolio Strategies Channel
Share

In October Equal Weight Outperformed S&P 500 by 2%

Elle CarusoNov 03, 2022
2022-11-03

The S&P 500 Equal Weight Index outperformed the S&P 500 in October, building on equal weight’s trailing 12-month relative outperformance.

The S&P 500 EWI increased 9.80% in October, outperforming the S&P 500 by 2% during the month. Key performance contributors for equal weight last month were the underweight to the communication services and information technology sectors, according to recent commentary from S&P Dow Jones Indices.

Equal weight has outperformed in the first three quarters of this year, with equal weight’s trailing 12-month relative outperformance climbing to 5% as of the end of October. Year to date, the S&P 500 EWI has declined 12.91% compared to the 17.70% decline of the S&P 500.

Seven out of 11 equal-weight sectors outperformed their cap-weighted counterparts in October. The sectors in which the EWI trailed the S&P 500 were energy, trailing by 0.8%, industrials, trailing by 0.7%, financials, trailing by 1.4%, and materials, trailing by 0.8%. 

Looking at the trailing 12-month performance of the equal-weighted and cap-weighted indexes, equal weighting has outperformed in the financials and materials sectors over the longer period.

Energy was the top-performing sector in October for both equal and cap-weighted and over the past 12 months.

Investors can gain exposure to the S&P 500 EWI with the Invesco S&P 500® Equal Weight ETF (RSP B+) or the Invesco ESG S&P 500 Equal Weight ETF (RSPE ), which screens for ESG criteria. Equal-weighted strategies can provide diversification benefits and reduce concentration risk by weighting each constituent company equally so that a small group of companies does not have an outsized impact on the index. 

The funds have also historically demonstrated strong returns and a tilt toward smaller, value companies, making both offerings uniquely attractive in the current environment. 

For more news, information, and strategy, visit our Portfolio Strategies Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X