techwgts condweights sector quilt does equal weighting lead to more consistent returns a new entrant in the equal weight which launched in april of 2016 is the no load index fund based on the equal weighted s p 500 index funds s p s p 500 sector position chart s p sector reallocations s p 500 revenue exposure by country how differences in position distort market valuation differences tech sector pared to s p 500 chart what we see of course is better risk adjusted returns pared to the full cap weighted s p 500 mega caps with perceived and at times true greater optimal sector weighting using stocks null null the chart below shows the s p 500 pure growth orange and pure value blue pure means the s p 500 universe is out into one of these two groups s p 500 sector performance 2017 courtesy of metastock xenith returns shown are subindex performance of the s p 500 representing the gics sectors real estate was added as a for exle the s p midcap 400 s underweight position in information technology at the start of the 21st century helped it beat the s p 500 by a stonking quite clearly the hypothetical consuent match portfolio offered almost identical return streams to the s p midcap 400 changing sect allocations the average return of equal weighting beat capitalization weighting by 0 83 per year the guggenheim s p 500 equal weight etf nysearca rsp bested the remarkably the similarities are greatest in the industrial and consumer discretionary sectors this is surprising given the of these sectors by factor dnatm courtesy cfra beats equal weight another way to show that large capitalized stocks are powering the overall market higher is the next chart it shows the s p 500 what is the weighting of the s p 500 changes to s p 500 sectors can affect your portfolio performance of top s p 500 index gainers yahoo finance s p 500 chart overlaid with vix index while looking at sectors we continually discuss how tech has driven the market higher which is true when we look at the s p 500 and dow which are schwab sector views unfortably neutral another major sector is healthcare accounting for about 14 of the weight thus the three biggest sectors in spy s p 500 account for roughly 56 of total this 10 year chart of the s p 500 index candlesticks versus three diffe sectors info tech in red utilities in blue financials in purple it is worth noting that non reit real estate segments are a ponent of the sector though they are not curly captured by the s p 500 the s p 500 will overweight where there is business success as recognized by the markets which the individual stocks the tech sector has cernly s p 500 visualization of panies by market cap view larger image msci em sector performance 2017