With SPY Breaking Records, Is It Time to Bet on RSP?

Group 1 - The S&P 500 reached an all-time high of 696.53, marking its 54th new 52-week high in the past year, with a 15% increase over the past year and nearly 88% over the past five years [1] - The Invesco S&P 500 Equal Weight ETF (RSP) has underperformed the SPDR S&P 500 ETF (SPY) by 539 basis points over the past 52 weeks, despite holding the same stocks, primarily due to the performance of mega-cap AI-related stocks [2] - The S&P 500 Equal Weight Index, which RSP tracks, offers a more balanced exposure compared to the top-heavy S&P 500, where the top 10 holdings account for 38.53% of the portfolio, while RSP's top holding accounts for only 2.84% [7] Group 2 - RSP's top holding is SanDisk, which has seen its weighting double since the last rebalance on December 19, with a six-week return of 103% from $237.61 to $481.43 [8] - Equal-weight ETFs like RSP are compared to well-managed sports teams, suggesting that they can provide diversified performance rather than relying solely on a few top performers [4] - The quarterly rebalancing of RSP and the S&P 500 ensures that while RSP may not consistently outperform SPY, it allows for the best-performing stocks to shine each quarter [6]