Here is a quick video I put together to help explain the difference between equal-weight and cap-weight investment "baskets" like the S&P 500.
Equal Weighted vs. Cap Weighted
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I can confirm that you are right about financial professionals not knowing. I just spoke to a group of wealth managers in Atlanta and was shocked at the looks on some faces when I approached the subject about why at times we use the SPY and at other times why we use the equal weight RSP.
Good video and some very good illustrations.
Best,
jp
jp
Tom,
I really like these new videos that you have added lately. It's a lot easier to follow what you are saying, when you see it. Keep up the good work. I had no idea Exxon was the biggest company out there. I would have guessed GE or Microsoft.
CL