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Investment Strategy2026-02-24

Equal-Weight ETF RSP Dominates Through Rebalancing Edge

Equal-weight S&P 500 ETF RSP is outperforming cap-weighted SPY. With equal-weight tech ETF XNTK delivering 216% excess returns over QQQ, the value of systematic rebalancing strategies is being reaffirmed.

관리자

One of 2026's most notable strategies is the 'equal weight' approach. While QQQ's top five holdings comprising 40% of weight has become a liability, XNTK (equal-weight tech ETF) achieved 216% excess returns over QQQ through systematic rebalancing. This article deeply analyzes the remarkable power of rebalancing and its practical investment strategy implications.

Structural Weaknesses and Risks of Cap-Weighted Indexing

Cap-weighted ETFs like SPY and QQQ inherently over-concentrate in large caps. The top 10 S&P 500 companies generate a third of total profits, making the index highly sensitive to their price movements. As large-cap tech weakens in 2026, this concentration risk is materializing. TQQQ investors are experiencing triple-leveraged losses from top holding declines, viscerally feeling this vulnerability. Checking concentration levels through an asset allocation calculator is the essential first step.

XNTK's Success: The Mechanism Behind 216% Excess Returns

SPDR NYSE Technology ETF (XNTK) invests equally across technology stocks with regular rebalancing. Maintaining 68.4% tech exposure while avoiding mega-cap concentration produced 216% excess returns versus QQQ. The strategy's core mechanism is clear: rebalancing automatically executes 'sell high, buy low' by trimming winners and adding to laggards. A rebalancing calculator systematically supports exactly this process, enabling individual investors to apply the identical strategy.

RSP vs SPY: 2026 Performance Comparison and Outlook

RSP (Invesco S&P 500 Equal Weight ETF) invests equally across all S&P 500 constituents. As the Great Rotation accelerates in 2026, RSP has begun outpacing SPY. Mid-caps and value stocks showing relative strength during large-cap tech weakness creates favorable conditions for equal-weight strategies. Dividend ETFs like SCHD also outperforming SPY shows the broader de-concentration theme gaining momentum. Growing numbers of investors are using asset allocation calculators to shift core positions from SPY to RSP.

Practical Application of Rebalancing Strategy and Tools

Equal-weight ETF success principles apply directly to individual portfolios. Using a rebalancing calculator for quarterly target realignment automatically calculates buy-sell quantities. Setting targets like SPY 30%, AGG ETF 25%, SCHD 20%, VNQ 15%, GLD 10% and adjusting whenever drift occurs improves long-term risk-adjusted returns. This applies even to leveraged products like TQQQ, though higher volatility requires monthly rebalancing and limiting weight to under 5% of total portfolio for safety.

Conclusion

RSP and XNTK's outstanding performance clearly proves the power of rebalancing. Regular portfolio rebalancing through dedicated calculators resolves large-cap concentration risk and flexibly responds to market rotations as the most effective strategy available. In 2026's Great Rotation era, the equal-weight approach is an essential strategy every investor should seriously evaluate.

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