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What Drives the S&P 500 Equal-Weight Return Premium?

By | 2017-08-18T16:52:29+00:00 May 18th, 2015|Research Insights, $SPY, $rsp|

A recent academic paper, Equal or Value Weighting? Implications for Asset-Pricing Tests, highlights two methods of weighting: Equal-weight and Value weight. As the paper states: With monthly rebalancing, an equal-weighted portfolio outperforms a value-weighted portfolio in terms of total mean [...]