No. of Recommendations: 2
The fact that firms like GE, AIG, Fannie Mae, Merck, Pfizer, Procter and Gamble, Johnson and Johnson, Cisco, Intel, etc. were for a short period of time heavily in favour, and have done terribly since then, means a SPY strategy would have had you heavily overweight in all these poorly performing stocks.
Aye, but the SPY strategy also had you in Alphabet, Amazon, Apple, Microsoft, Meta and NVIDIA as they grew, and let them grow - it didn't keep chopping them off every quarter. If you went with a total market fund you also got Tesla before it joined SPY.
It's clear to me that cap weighting isn't optimal. It's not clear to me that equal weighting the S&P500 via RSP is an improvement.
Could it be that RSP is better for the saver, SPY is better for the person living off their money?
