Equal-Weight S&P 500 Outperforms Market-Cap Index by Most Since 2009

Key Facts

1The equal-weight S&P 500 ETF (RSP) is outperforming the market-cap weighted SPY by the largest margin since April 2009 as capital rotates out of AI stocks.

The equal-weight S&P 500 ETF (RSP) is outperforming the market-cap weighted SPY by the largest margin since April 2009. Benzinga reported that this shift occurs as capital rotates out of AI stocks and mega-cap technology leaders into the broader market.

This performance marks a significant shift in market leadership, with investors seeking value in the average stock rather than concentrated tech positions. This rotation follows recent economic data, including initial jobless claims which fell to 194,000 on October 22, 2026, coming in below previous forecasts.

Market participants are looking ahead to the Federal Reserve interest rate decision on October 28, 2026, with forecasts centered at 4%. Additionally, the GDP growth rate for the quarter is scheduled for release on October 29, 2026, which may further influence the current sector rotation trends.