BEST S&P 500 ETF - Equal Weight (RSP) vs Market Weight (VOO and SPY). Which is best for you?

What's interesting is that immediately after drawdowns, RSP seems to recover better. Which is intuitive, larger cap would be worse suited to adjust to capitalizing after a market wide downturn, while smaller companies would technically be more inclined to adjust cash flow and take bigger risks. This makes weighted indexes the perfect shiny during a recession or bad years. You're guaranteed a steeper fall than momentum driven funds (cheaper buy-in) but also a higher flip and faster recovery due to value being the primary driver immediately following a bad year.

I'm a New Subscriber. Great job 👏 explaining these

I'm looking at RSPT & RSPS.... I want to add it to my profolio that already has DGRO, DGRW & JQUA... Want to keep these 3 @ %90 of my portfolio and %10 into the rspt & rsps ones... not a big fan of the cost @ 0.40 ( 40 bips) but at least they're rebalancing it every quarter... wish they had a little bit more diversification Within by maybe adding additional companies but I think a combination of these two at a 10% weight in my portfolio looks good to me... anyways would some of the concepts you're talking about in this video work for my scenario... Thanks for your time and the video 😎✌️

Great video thanks!

Microsoft and Apple for 25 years ,🥹🥹🥹🥹

Great video Dave; my intellect and emotions are in conflict on this one😊.
1. The constant rebalancing translates into cutting your flowers (growth stocks) and watering the weeds (value stocks)
2. If you believe in an efficient market theory then why not let the market “do it’s thing”.
3. You and I both know there are periods when growth stocks ate in favor. And a reversion to value stocks being favorable. I’m thinking too much.

Thanks for a great review. I had never heard of RSP. I do own VOO.

Looked at this a while back. Equal weight sounds good in theory but the performance shows that its not too great vs market weight. Prefer SCHD or just SPY/SPLG if I was picking an S&P 500 fund. A better fund is EQL the equal sector fund for the S&P500 although it has an expense ratio of 0.26 and only 283 million in assets

Very, very intersting, thank you for drilling down on this, Dave!

Really interesting discussion and good info concerning taxes at the end. I looked at RSP a couple of years ago, but decided not to buy it but I did sell some puts on it a couple of times. My strategy long term is to own SPY (bullish) and generate solid income by selling covered calls strategically (keep it passive) much further out in time… turn it into a 12% yielder annually!!

Hi Dave, I’m taking a position in the Vix. UVXY is the symbol and it’s almost at its 52 week low. VXX is another symbol and has options. I’m still concerned about the market. Has your opinion changed going forward?

Excellent. Nice points on momentum and tax efficiency of ETFs. Great job, Dave!

Hey Dave, just curious on your thoughts on Tesla, pretty beat up, F rating on Schwab but I feel like I believe in Elon, are there issues in the company that I don’t know about??