S&P 500 (blue) versus its equal weighted counterpart (orange)

19 Eki 2023

This chart illustrates the divergence between the S&P 500 index, a capitalisation-weighted index, and its equal weighted counterpart. Year-to-date, the performance of the S&P 500 has been largely attributable to seven stocks in the generative AI space, aptly named “The Magnificent Seven”.