Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

A Different Breadth View

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The ETF symbol SPY is the granddaddy of them all. It’s the oldest, most heavily-traded, and best-known. There is a very similar fund, however, with the symbol RSP, which also represents the S&P 500. Its difference, however, is that its calculation is based on the equal-weighted S&P 500, as opposed to the “normal” S&P which heavily favors the mega-caps.

As shown in the chart above, the SPY (blue line) has massively outperformed the RSP (black line) over the past couple of years. This simple difference in weighting yields about a two-fold difference in performance, because the mega-caps are carrying so much weight.