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Barchart
Barchart
Jim Van Meerten

You Might Be More of an Active Investor Than You Think

  • Cap-weighted ETFs are not fully passive. They actively overweight rising stocks and underweight declining ones through constant rebalancing.
  • Over the past 10 years, IVV (cap-weighted) significantly outperformed RSP (equal-weight) in both price appreciation and total return.
  • IVV delivered a 249.28% 10-year total return versus RSP’s 164.91%.
  • While these ETFs show strong performance, investors should maintain diversification and risk management aligned with their personal risk tolerance.

Equal-Weight vs. Cap-Weight ETFs

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