A Proven Path
Since 1957, the S&P 500 has been regarded as the best single gauge of the U.S. Equities market. There is over $7.8 trillion USD benchmarked to the index, with index assets comprising approximately $2.2 trillion USD of this total. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.
The S&P 500 Equal Weight Index is the equal weight version of the S&P 500 Index. It contains the same constituents as the cap-weighted S&P 500, but each company in the S&P 500 Equal Weight Index is allocated the same weight at each quarterly rebalance. Therefore, the holdings are balanced across all of the S&P 500 companies evenly over time. Whereas, the cap-weighted S&P 500 Index over-weights the 50 largest companies with more than 50% of the holdings.