Market‑Cap vs Equal‑Weight Indexes in the U.S.: S&P 500 Examples & What Changed in 2025

Wondering why two indexes that track the same 500 stocks can behave so differently? In the U.S., the classic S&P 500 is market‑capitalization‑weighted, whereas its cousin the S&P 500 Equal Weight Index gives each company the same weight. Despite the same names, the strategies produce different risk and return profiles. 📊 What this video will cover: • How market‑cap weighting works: larger companies (by market value) dominate the index. • How equal‑weight indexing works: each stock gets equal weight, increasing exposure to mid & smaller large‑cap firms. • Key differences you must know: concentration risk, turnover & transaction costs, sector biases, recent performance trends. • What changed in 2025 and why some investors are re‑thinking equal‑weight vs cap‑weight—especially given how mega‑cap stocks dominate. 🔔 Subscribe for deeper U.S. index strategy breakdowns, ETF comparisons, and smart portfolio design. #CapWeightedIndexUSA #EqualWeightIndexUSA #SP500IndexComparison #IndexConstruction2025 #USStockMarketStrategy