SPY vs RSP: Is the Rally Real?A market rally can look strong on the surface, but the real question is:
Is the whole market rising, or are only a few big stocks carrying the index?
This is where comparing SPY and RSP becomes useful.
SPY tracks the S&P 500 in a market-cap weighted way. That means the biggest companies have a larger effect on the index. If a few mega-cap stocks are performing well, SPY can move higher even if many other stocks are not doing much.
RSP tracks the S&P 500 with equal weight. That means every
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