3 months ago, we debated whether RSP would do better than SPY. The theory was that the cap-weighted S&P 500 would do worse than equal-weight RSP due to the former being overweight in “overvalued” tech names.
As you can see in the chart below, in this bear market, RSP has done slightly worse (down 7.2%) than SPY (down 6.8%) over the past 3 months. If you zoom out over the past 12 months, you’ll see that there’s hardly any difference between SPY’s chart and RSP’s chart. There goes the theory about the largest cap tech companies in the S&P 500 being “overvalued” relative to smaller caps. [BTW, I love the ability to post charts and graphs on this new board. Kudos to the Motley Fool crew!]
