Concerns about a bull market with limited support, driven largely by large-cap names, have weighed on many traders, but data suggests an extension, as seen in the Invesco S&P 500 Equal Weight ETF (NYSERCA:RSP), which is found floating nearby historical commercial highs
The RSP tracks the S&P 500 Equal-Weighted Index, which includes the same components as the capitalization-weighted S&P 500 (SP500), but each company in the equal-weighted indicator is assigned a fixed weight, meaning companies like Nvidia (NVDA) are given the same weight as Dollar Tree (DLTR).
As of Tuesday, RSP is trading at $171.43 per share and is less than 1% away from its all-time high of $173.08 per share, which was set on July 31. Furthermore, from a technical standpoint, RSP is currently trading above its 10-, 50-, 100-, and 200-day moving averages.
The financial community has also injected net new money into the equal-weighted index, with the RSP raising $3.23 billion since the beginning of July. Over the past 6 months, since March 1, the exchange-traded fund has accumulated $6.59 billion.
For reference, over the past six months as of March 1, the world's largest ETF, SPDR S&P 500 ETF Trust (NYSERCA:SPY) raised $12.54 billion, a little less than double what RSP managed to attract, but SPY is nine times larger than RSP. From an assets under management perspective, RSP manages $59.68 billion and SPY manages $565.92 billion.
Market participants who wish to closely track the performance of the benchmark S&P 500 (SP500) index can follow both exchange-traded funds and mutual funds as a proxy for index exposure. Some funds worth examining include: (VOO), (IVV), (SSO), (UPRO), (SH), (SDS), (SPXU), (FXAIX), (VFIAX), and (VFFSX).
