From Nasdaq: 2025-05-27 06:41:00

The S&P 500 is a key indicator of the U.S. stock market, comprising 500 major companies representing 80% of total market value. However, the index is weighted, with top companies like Apple and Microsoft dominating performance. The Invesco S&P 500 Equal Weight ETF offers a solution, giving equal influence to all 500 companies.

Investing in the S&P 500 means relying heavily on a few major companies’ performance. The equal weight index, while missing out on top-performing tech stocks, has historically outperformed the weighted index over the long term. The Invesco ETF has a slightly higher expense ratio but offers a more balanced approach to investing.

Consider the Invesco S&P 500 Equal Weight ETF as an alternative to traditional index funds for a more balanced investment strategy. The Motley Fool’s top stocks exclude this ETF, but historical performance shows potential for solid returns. Join Stock Advisor to access the latest top 10 stock picks and benefit from market-crushing returns.



Read more at Nasdaq: 1 No-Brainer S&P 500 Index Fund to Buy Right Now for Less Than $200