Equal weight investing has become more popular in recent years as a strategy to diversify portfolios. The S&P 500 equally weighted index provides an example of how this works in practice. This article will provide an overview of equal weight investing and look at some of the top performing equal weight companies in the S&P 500 during 2020.
What is equal weight investing
Equal weight investing means holding the same dollar amount of each company in a portfolio or index fund. This differs from market capitalization weighting where larger companies make up a bigger percentage of the portfolio…
Benefits of equal weight investing
Some potential benefits of equal weight investing include…
Top 2020 equal weight companies in the S&P 500
Looking at the performance of equal weight companies in the S&P 500 during 2020 shows…
In summary, equal weight investing spreads risk more evenly across companies of all sizes. The top equal weighted companies in 2020 performed well, showing the potential of this approach.