The Equal-Weighted S&P 500 Rallied From 52-Week Lows To 52-Week Highs In A Month
Portfolio Pulse from Erica Kollmann
The Invesco S&P 500 Equal Weight ETF (RSP) has experienced a significant rally, rising nearly 19% from a 52-week low of $133.34 to a 52-week high of $158.25 in just 33 trading days. This performance is notable as it is the fastest such rally since 1957, except for one instance in September 1982. The equal-weighted approach of RSP means that all companies in the S&P 500, regardless of size, have the same impact on the ETF's performance. This rally suggests a potential for a strong market move in 2024, following a 23% increase year-to-date after a nearly 20% drop in 2022.
December 19, 2023 | 10:09 pm
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POSITIVE IMPACT
RSP's rapid ascent from a 52-week low to a 52-week high in a short period indicates strong market breadth and could signal continued positive momentum in the short term.
The historic rally of RSP from a 52-week low to a 52-week high in a short span is a bullish indicator. Given the equal-weighted nature of the ETF, this suggests broad market participation rather than a few large-cap stocks driving the index. Historically, such rapid rallies have been followed by further gains, increasing the likelihood of a positive short-term impact on RSP's price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100