S&P 500 Hits 5,000 Milestone, Yet Concerns Of Overvaluation Versus Its Equal-Weight Counterpart Mount
Portfolio Pulse from Piero Cingari
The S&P 500 index reached 5,000 points, marking a new all-time high, with the SPDR S&P 500 ETF Trust (SPY) seeing a 21% surge over the last year. In contrast, the Invesco S&P 500 Equal Weight ETF (RSP) only gained 4% in the same period. The performance disparity is largely attributed to the 'Magnificent Seven' tech giants, including AAPL, MSFT, GOOG, GOOGL, AMZN, META, NVDA, and TSLA, which now constitute 29.3% of the S&P 500 and have contributed significantly to its returns.
February 08, 2024 | 9:33 pm
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POSITIVE IMPACT
Apple Inc. (AAPL) is one of the 'Magnificent Seven' tech giants, significantly contributing to the S&P 500's performance.
As part of the 'Magnificent Seven', AAPL's performance is a key contributor to the S&P 500's overall gains.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Amazon Inc. (AMZN) is among the 'Magnificent Seven', significantly influencing the S&P 500's record performance.
AMZN's inclusion in the 'Magnificent Seven' underlines its substantial impact on the S&P 500's gains.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Alphabet Inc. (GOOG) contributes to the S&P 500's historic performance as part of the influential 'Magnificent Seven'.
GOOG's role in the 'Magnificent Seven' highlights its significant contribution to the S&P 500's surge.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Alphabet Inc. (GOOGL) is a key player among the 'Magnificent Seven', driving the S&P 500's performance.
As part of the 'Magnificent Seven', GOOGL's strong performance is vital to the S&P 500's overall success.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Meta Platforms Inc. (META) significantly contributes to the S&P 500's surge as part of the 'Magnificent Seven'.
META's role among the 'Magnificent Seven' tech giants is crucial for the S&P 500's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Microsoft Corp. (MSFT) plays a crucial role in the S&P 500's performance as part of the 'Magnificent Seven'.
MSFT's significant weight and performance in the S&P 500 underscore its impact on the index's record highs.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
NVIDIA Corp. (NVDA) is a major contributor to the S&P 500's performance, as part of the 'Magnificent Seven'.
NVDA's significant performance and weight in the S&P 500 emphasize its contribution to the index's highs.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SPDR S&P 500 ETF Trust (SPY) surged 21% over the last year, reflecting the S&P 500 index's strong performance.
SPY directly tracks the performance of the S&P 500, making its 21% surge a direct reflection of the index's overall performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Tesla, Inc. (TSLA), despite a negative return, remains a key part of the 'Magnificent Seven' affecting the S&P 500.
TSLA's unique position among the 'Magnificent Seven', despite a negative return, adds complexity to its impact on the S&P 500.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Invesco S&P 500 Equal Weight ETF (RSP) lagged with only a 4% return over the last year, significantly trailing the cap-weighted S&P 500.
RSP's underperformance compared to SPY highlights the impact of the 'Magnificent Seven' tech giants on the cap-weighted S&P 500's returns.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90