More interesting, that around 2000 the top 5 was Microsoft, GE, Cisco, Intel, Walmart.
Nothing last forever.
Five Biggest Stocks Are 23% of S&P 500 Market Cap
21–30 of 86 posts
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#22Earlier quoted context omitted.
> Try the ETF with the symbol "RSP". It's an S&P 500 fund, but each of the 500 is equally weighted. Note that an equal-weighted index will tend be more volatile, have higher turnover ( i.e. more trading costs and short-term tax effects) and be sensitive to value over momentum in comparison with a market-cap weighted index like the S&P 500. The former have outperformed the latter over the last decade (EDIT: no, it has…
Have equal weighted indexes outperformed market cap weighted indexes in the last decade? Morningstar shows VOO with a greater total return than RSP for past 5 years and since inception. I didn’t see past 10 years at a quick glance, but I imagine it’s the same.
I don't know why you would limit your dataset to the last decade. That doesn't seem a valid analysis, even though it might be easier to lookup with free tools online.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#23Earlier quoted context omitted.
Have equal weighted indexes outperformed market cap weighted indexes in the last decade? Morningstar shows VOO with a greater total return than RSP for past 5 years and since inception. I didn’t see past 10 years at a quick glance, but I imagine it’s the same.
The argument is that the top five are overvalued. If so they would have outperformed during the period they became overvalued.
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Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#24Earlier quoted context omitted.
Have equal weighted indexes outperformed market cap weighted indexes in the last decade? Morningstar shows VOO with a greater total return than RSP for past 5 years and since inception. I didn’t see past 10 years at a quick glance, but I imagine it’s the same.
The argument is that the top five are overvalued. If so they would have outperformed during the period they became overvalued.
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Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#25Earlier quoted context omitted.
Have equal weighted indexes outperformed market cap weighted indexes in the last decade? Morningstar shows VOO with a greater total return than RSP for past 5 years and since inception. I didn’t see past 10 years at a quick glance, but I imagine it’s the same.
The argument is that the top five are overvalued. If so they would have outperformed during the period they became overvalued.
I was replying to JumpCrisscross’s comment.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#26Earlier quoted context omitted.
Have equal weighted indexes outperformed market cap weighted indexes in the last decade? Morningstar shows VOO with a greater total return than RSP for past 5 years and since inception. I didn’t see past 10 years at a quick glance, but I imagine it’s the same.
I don't know why you would limit your dataset to the last decade. That doesn't seem a valid analysis, even though it might be easier to lookup with free tools online.
I was replying to JumpCrisscross’s claim about performance, which specified the last decade between equal weighted and market cap weighted indices.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#27I'd have been surprised if it had turned out otherwise. I'd expect some kind of power law distribution, and it's not news that the biggest sticks are, well, huge. If the distribution falls away quickly enough, the result follows.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#28Earlier quoted context omitted.
How often does the fund get rebalanced? That’s the nice thing with the market cap weighted SP500 funds, no tax consequences from rebalancing. But you could plug “RSP” into a tax-advantaged account. Edit: You can owe taxes even if you don’t personally buy/sell. As a fund shareholder, you could be on the hook for taxes on gains even if you haven't sold any of your shares. https://investor.vanguard.com/investing/taxes/m…
What personal tax consequences arise from rebalancing within an index fund?
None, that's the point of a fund.
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#29More interesting, that around 2000 the top 5 was Microsoft, GE, Cisco, Intel, Walmart. Nothing last forever.
Except for Microsoft :P
Re: Five Biggest Stocks Are 23% of S&P 500 Market Cap
#30Earlier quoted context omitted.
> Try the ETF with the symbol "RSP". It's an S&P 500 fund, but each of the 500 is equally weighted. Note that an equal-weighted index will tend be more volatile, have higher turnover ( i.e. more trading costs and short-term tax effects) and be sensitive to value over momentum in comparison with a market-cap weighted index like the S&P 500. The former have outperformed the latter over the last decade (EDIT: no, it has…
My preference would be holding normal SPY and hedge the overweighted NASDAQ stocks with short NQ futures. In this way you only need to rebalance the NQ futures which benefits from 60/40 rule with better tax rate.
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