The recent tech selloff, spurred by concerns over capital spending in AI, has led to a notable rotation into value stocks, impacting the S&P 500. This shift has been driven by investors seeking stability amid the volatility associated with tech-heavy, market-cap-weighted indices. The equal-weighted S&P 500, with its diversified sector exposure, particularly in industrials, utilities, and financials, has managed to outperform its market-cap-weighted counterpart. This trend is further supported by strategic recommendations from financial analysts who emphasize the benefits of the equal-weighted index in the current market environment.
The SPDR Portfolio S&P 500 ETF (SPLG) experienced a decline, dropping 1.61% to $70.36 at 11:00 AM on Monday, January 27.