Alternate Constituent Weightings in the S&P 500

Sun, 04/04/2010 - 02:33 EDT - Seeking Alpha

Richard Shaw (QVM Group) submits: In our last two articles (first, second), we discussed different ways to achieve total US stock market exposure. In this article, we discuss alternate ways to achieve S&P500 exposure. In addition to the traditional market-cap weighted S&P 500 exchange traded funds (SPY and IVV) and several mutual funds (VFINX, for example), it is possible to own all of the S&P 500 stocks other interesting ways:

an equal stocks weighted portfolio (1/500th per company) (RSP)
an equal sector weighted portfolio (1/9th per sector) (EQL)
a revenue weighted portfolio (RWL)
an earnings weighted portfolio (EPS)

It’s a bit surprising that there is not a dividends weighted version of the S&P 500. The closest thing to that is the WisdomTree large-cap dividend fund (DLN), but is it not of the S&P.Complete Story »

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