The Equal Weight Enigma: What It Reveals About Market Concentration The recent milestone of Invesco's S&P 500 Equal Weight ETF (RSP) crossing $100 billion in assets under management has sparked renewed interest in this less flashy corner of the index fund world.
RSP's outperformance is driven not by its mechanics, but by a structural difference between itself and its cap weighted counterpart.
The key to RSP's success lies in its ability to mute the influence of any single giant stock through quarterly rebalancing.