Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inbox Gmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscription Click this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
This Month's Bonus News How Long Can Equal-Weighted ETFs Keep Outperforming the S&P 500?By Jordan Chussler. Published: 2/1/2026. 
Article Highlights - The market rotation that began in fall 2025 and continued into 2026 has benefited less popular sectors as well as equal weighted funds.
- Tech stocks have staged a comeback over the past week in the lead-up to the Magnificent Seven’s earnings.
- Still, the Invesco S&P 500 Equal Weight ETF is outperforming weighted index funds like the Vanguard S&P 500 ETF by 100 basis points.
The market rotation out of stocks heavily leveraged to AI—such as the Magnificent Seven—and into defensive corners of the market has continued into the new year. In turn, those inflows have helped sectors such as energy, materials, and consumer staples lead the way over the past month. During that period, those three groups have generated gains of more than 12%, 8%, and 6%, respectively, placing them among the top performers in the S&P 500. There are 90 paper gold claims for every real ounce in COMEX vaults. Ninety promises, one ounce of metal. It's like musical chairs with 90 players and one chair. COMEX gold inventory dropped 25 percent last year alone as gold flows East to Shanghai, Mumbai, and Moscow. On March 31st, contract holders can demand delivery. When similar situations arose in the past, markets closed and rules changed. Paper holders got crushed while mining stock holders made fortunes. One stock sits at the center of this crisis. Get the full story on this opportunity now. Those flows have also helped equal-weighted exchange-traded funds (ETFs) outperform their market-cap-weighted counterparts, as the tech and communication services sectors—home to the Magnificent Seven—managed only a 1.04% gain and a 0.91% loss, respectively. But with Q4 2025 earnings season underway and Big Tech starting to report this week, the mega-cap companies could be poised to rebound. That raises an important question: How much longer can equal-weighted ETFs continue to outperform the S&P 500? Historically High Valuations and Concentration Risk Have Spooked Investors One issue that arises from that lack of diversification is concentration risk. Many portfolios are overexposed to specific markets, sectors, and industries. Take, for example, the VOO's allocations: - 96.5% of the stocks are based in the United States.
- 32.6% of the stocks fall into the tech sector.
- 14.1% of the stocks belong to the semiconductor and semiconductor equipment industry.
As a result, institutional buying for the VOO has slowed dramatically, from $72 billion in Q4 2024 to just $7.51 billion in Q4 2025—a year-over-year (YOY) decline of nearly 90%. At the same time, institutional selling fell from $7.24 billion to $588 million, a YOY decrease of roughly 92%. The Magnificent Seven's underperformance over the past year has been widely noted. Until those hyperscalers and chipmakers demonstrate that record-high CapEx spending will translate into stronger earnings, both institutional and retail investors are likely to continue favoring ETFs with more balanced weightings. The Invesco S&P 500 Equal Weight ETF's Healthy Balance To be fair, institutional buying of the RSP has slowed as well: inflows fell by nearly 92% from Q4 2024 to Q4 2025. But unlike the VOO, institutional selling of Invesco's equal-weight fund declined by only about 70%. While the mega-cap companies that dominate market-cap-weighted indexes expose investors to elevated concentration risk, the RSP's holdings are equal-weighted, and its sector and industry exposures are more evenly distributed. Whereas the VOO's top sector is tech at nearly 33%, that sector ranks third in the RSP behind financials (15.1%) and industrials (14.2%). Industrials was the third-best-performing sector in the S&P 500 last year and has continued that run, gaining 4.99% over the past month. Semiconductors—the VOO's largest industry at 14.1%—rank ninth in the RSP at just 3.9%. At 6.1%, utilities are the RSP's top industry, followed by capital markets (5%), health care equipment and supplies (5.0%), and real estate management and development (5%). That weighting limits potential upside if the Magnificent Seven stage a strong rebound this year. However, the RSP's equal allocations also help insulate investors from the heightened volatility and downside risk that accompany overly concentrated funds.
| 
0 Response to "We're excited to have you on board"
Post a Comment