Comparing the S&P 500 Equal-Weighted Index TR with the S&P 500 Index TR

The S&P 500 Index is market cap weighted. That means that the larger the market cap of the company, the more weight it has in the index. The idea behind the S&P Equal-Weighted Index is to (you guessed it) give equal weight to each company in the index. Of course, this changes the dynamics drastically because the companies with smaller market caps get a 1/500th share in the index along with the larger companies in the index.

So, what does that mean for performance?

Well, there’s not a lot of data available but I did find returns going back to 2009. Like I said, there’s not a lot of data available. I did find some exchanged-traded funds that have been around nearly ten years. I’ll see about running the numbers on them.


Here are a couple of charts I put together comparing the S&P 500 Equal-Weighted Index TR with the S&P 500 Index TR. As you can see, the Equal-Weighted index handily outperformed the standard index (at least in beginning part of the data).

I’m looking forward to seeing how the exchange-traded funds that track the equal-weighted indexes performed. Stay tuned…

Finally Back to Normal (I Think)

Between projects going on here in JLP Land and my webhost losing their server, it’s been quite here at AFM.

I’m happy to report that things should be back to normal now and I should be back to regular posting tomorrow morning.

On a happy note, I got our taxes finished today (nothing like putting stuff off until the last minute). I’m thankful for tax software.


I received a message yesterday morning that my host experienced a server crash. They got my site back up and running but I lost some content and some comments. Most of the comments were related to the book giveaway. So, if you entered the giveaway, you might want to check and make sure your entry is still there. If not, just leave another comment. Sorry about that.