INDEX is the new independent alternative. We are the index fund that offers “proxy polling”, giving index investors a voice.
Fund Description and Objective
The Index Funds S&P 500® Equal Weight seeks to replicate the total return of the S&P 500® Equal Weight Index before fees and expenses.
S&P 500® Equal Weight Index
The S&P 500® Equal Weight Index is the equal weight version of the S&P 500® Index. It contains the same constituents as the cap-weighted S&P 500®, but each company in the S&P 500® Equal Weight Index is allocated the same weight at each quarterly rebalance. Therefore, the holdings are balanced across all of the S&P 500® companies evenly over time. Whereas, the cap-weighted S&P 500® Index over-weights the 50 largest companies with close to 50% of the holdings.1
S&P 500® Attributes
Created in 1957, the S&P 500® was the first broad U.S. market-cap-weighted stock market index and has been regarded as the best single gauge of the U.S. Equities market. This world-renowned index includes 500 of the top companies in leading industries of the U.S. economy. Focusing on the large-cap segment of the market, the S&P 500® covers approximately 80% of available U.S. market capitalization.
S&P 500® Equal Weight Index vs. S&P 500® Index (cap-weighted)
A $10,000 investment into the S&P 500® Equal Weight Index at it’s inception on 1/08/2003 until 12/31/2020 would have grown to over $71,448.
As of 09/30/2020
As of 12/31/2020
As of 12/31/2020
Current and future portfolio holdings are subject to change. Holdings are subject to change.
1. Buy INDEX
2. Setup Auto Deposits
3. Own the Market Long-Term
4. Ignore the News
5. Life Your Life
INDEX uses an Equal Weight Strategy
S&P 500® EQUAL WEIGHT INDEX
Equally weights all 500 companies
S&P 500® INDEX (CAP-WEIGHTED)
Overweights the largest companies
For illustrative purposes. Does not represent an actual index.
As of 12/31/2020
Performance data quoted represents past performance, which is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
“If historical trends continue, a handful of giant institutional investors will one day hold voting control of virtually every large U.S. corporation…Three index fund managers dominate the field with a collective 81% share of index fund assets… Such domination exists primarily because the indexing field attracts few new major entrants.”
Wall Street Journal, 11.29.18
Jack Bogle: Founder of Vanguard and the First Index Mutual Fund
Interesting Cap-Weighted Facts
As of 11/2020
*Combines Information Technology and Communications Services sectors
Better After Crash Index Strategy?
Directly following the last two largest stock market crashes, the S&P 500® EQUAL WEIGHT INDEX rebounded much faster than the CAP-WEIGHTED S&P 500® INDEX.
+13.17% from 2003-2004
+26.70% from 2009-2010
Not all Index Funds are created EQUAL
The top 5 companies have the same weighting as the bottom 357 companies.
Note: Not all 500 companies are represented here, just the largest and smallest in terms of market capitalization for illustration purposes. As of 11-2020.
Past performance is not indicative of future results. Short term performance does not equal long term performance. Indexes are not managed, it is not possible to invest directly in an index.
*Source: ONEFUND as of 11/30/2020
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