Now is the time to buy the equal-weighted S&P 500 Index. The S&P 500 equal-weighted index could be the next big move ahead of 2025, as investors expect more market sectors such as financials to participate in the rally rather than the large-cap stocks that have dominated the market this year. “If you see this continued rotation and large-cap stocks continue to lag in this rally, then naturally that’s going to create some headwinds for the S&P given the weighting of these leaders in the index. , Jason Hunter, head of technical strategy at JPMorgan Chase, said on CNBC’s “The Closing Bell” on Monday: “So, like I said, it’s more of an equal weighting of Russell and S&P. ” RSP YTD mountain Invesco S&P 500 Equal Weight ETF Much of this year’s gains have to do with the so-called Big Seven stocks, which support the market-cap-weighted S&P 500 with their outsized size and clout. These Big Tech stocks The companies, including Nvidia and Apple, together account for about a third of the benchmark index, but many investors expect the rally may have run out of steam — at least for the broader index, which is already in a bullish run. Now in its third year. The S&P 500 will rise more than 26% in 2024 and surge about 24% in 2023 – and many strategists don’t expect a repeat of its historically strong pace in 2025. The cap-weighted S&P 500 is “statistically expensive” by almost every metric. The rest of the market has started to outperform. Financials are the third-best performing sector, up about 34% year to date. One way for investors to take advantage of the trend is the Invesco S&P 500 Equal Weight ETF (RSP), which attracted nearly $4.4 billion in inflows in the past month, according to FactSet data. Growth will be approximately 18% in 2024, with an expense ratio of 0.2%.
By 2025, more investors will shift to the equally weighted S&P 500 | Real Time Headlines
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