Arabic version: استراتيجية إس آند بي متساوية الأوزان تتراجع مع استمرار مخاطر التكنولوجيا
According to Cnbc, investors who shifted toward equal-weight S&P 500 funds to reduce technology concentration risk have trailed the standard market-cap-weighted index in 2026. The equal-weight approach posted its longest losing streak since 2022 in August and September, with the index falling more than 4% in September.
The standard S&P 500 has continued to reach new highs even as market breadth has weakened. Goldman Sachs said breadth had fallen to its lowest level since the dotcom bubble, while The Kobeissi Letter found that a basket of 42 AI stocks generated 67% of the S&P 500’s price return since the start of 2024. Technology represents nearly 40% of the standard index, compared with about 16% of its equal-weight counterpart.
DataTrek Research said the equal-weight S&P 500 has consistently lagged the market-cap-weighted version over almost any one-year holding period for nearly four years. Still, it called equal weight at least a partial substitute for addressing concentration risk. The firm said equal weight outperformed by an average of 3.2 points during 2004-2014, but has underperformed by an average of 2.8 points since 2015.
Todd Rosenbluth of TMX VettaFi said investors should not treat cap-weighted and equal-weight ETFs as an either-or choice. He suggested combining both approaches, or using equal-weight sector funds. Todd Sohn of Baird Strategas said investors should consider “low Tech, low correlation” alternatives around a portfolio core, including SMID-cap strategies, natural resources and energy, while favoring high-quality, short-duration investment-grade fixed income.
