Chart of the Day - Thursday, January 11, 2024

🏆 Today’s Chart of the Day was shared by Todd Sohn (@Todd_Sohn).

• The Equal-Weight S&P 500 ETF ($RSP) has seen heavy inflows over the past year despite underperforming Cap-Weight ($SPY) by a wide margin.

• Equal-Weight ($RSP) is lagging Cap-Weight ($SPY) by -12% over the trailing 12 months – the bottom 5% of historical readings.

• Todd points out that the 10 largest S&P 500 weights represent 32% of the index – the highest in 40+ years of data.
  
  The takeaway: After extreme outperformance, Mega-Caps could lag in the coming months. However, broader participation would be healthy.