There sure has been a lot of talk about how Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT) and Facebook (FB) are driving the S&P 500 index.
Check out this comparison chart…daily from late 2017 to current.
It’s a chart of the S&P 500 index with each stock equally weighted…RSP
S&P500 Equal Weight ETF (RSP) daily
The white line is the S&P 500 index with reverse weighting…RVRS
The yellow line is the cap-weighted S&P 500 index…SPY
Not much different…hmmm Reverse weighted index out performs?…hmmm
Also, it’s OK if just a few names are driving the index. That’s how it usually works in bull markets.