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  • S&P 500 Equal Weight Index Dips Into Red Year-to-Date. Shows Entire Market Depends On 8 Giants, but They’re Swooning Too

S&P 500 Equal Weight Index Dips Into Red Year-to-Date. Shows Entire Market Depends On 8 Giants, but They’re Swooning Too

September 28, 2023

by Wolf Richter Wolf Street

QE giveth, QT taketh away. The two sucker rallies this year of the S&P 500 Equal Weight Index got wiped out.

Stocks in the S&P 500 Equal Weight index [IQX] are not weighted by market capitalization. It contains the same stocks as the S&P 500 index, but each stock weighs the same within the index. The purpose is to see if the performance of a small number of stocks with huge market capitalizations is driving the overall index and is in effect hiding what is happening to the rest of the market.