Still... the Rydex S&P 500
Equal Weight index performance in the US has been impressive.
Not exact matches
The NYSE Arca Airline
Index (XAL) is an equal dollar weighted index designed to measure the performance of highly capitalized companies in the airline indu
Index (XAL) is an
equal dollar
weighted index designed to measure the performance of highly capitalized companies in the airline indu
index designed to measure the
performance of highly capitalized companies in the airline industry.
The
equal weight index corrects this systematic flaw to a degree (the small correction is still worth 2.7 percent per year in additional
performance).
The Lipper Balanced Fund
Index measures the
equal -
weighted performance of the 30 largest U.S. balanced funds as defined by Lipper.
The biggest dataset that I'm aware of for the
performance of
equal weighted indices is from Wilshire Associates.
Your ETF
index fund might be market cap
weighted or
equal weight, hedged or derivative -, size - or strategy - based, all of which can affect the fund's
performance.
Power - Shares (tm)
equal weight their
indices and hence are likely to provide better
performance.
With that in mind, we present to you the
performance of the Wilshire 5000
Equal Weight Index, which is one of the broadest measures of the stock market.
Seeks to replicate as closely as possible the
performance of the S&P 500
Equal Weight Index, before fees and expenses, on a daily basis.
Breaking Down Value Here's an example to help explain the
performance of a capitalization -
weighted index compared to, say, an
equal -
weight index.
The
equal weight index corrects this systematic flaw to a degree (the small correction is still worth 2.7 percent per year in additional
performance).
Yuliya Plyakha, Raman Uppal and Grigory Vilkov examine the
performance of
equal -, value -, and price -
weighted portfolios of stocks in the major U.S. equity
indices over the last four decades (note that here «value»
weight is used in the academic sense, meaning «market capitalization
weight»).
Such an environment can be identified by the
performance of
equal -
weight indices, since — if
equal weight outperforms the cap -
weighted benchmark then, by definition, the average stock outperforms.
If we want to know the average stock's
performance, we can learn it by observing the return of an
equal -
weight index.
Since the two
indices comprise the same stocks, the superior return of the
equal weight version tells us that, in 2014,
weighting by capitalization hurt
performance — in other words, that Apple was the exception, not the rule.
And note that the benchmarks for relative
performance vary among value
indices; as we've indicated previously in our research on value
indices, an
equal weight benchmark is a better indication of the value - added by the particular
index methodology.
The balance that you get with an
equal weighted index fund really comes into play when you chart out
performance over time.