Equal-weight S&P 500 is leading the 2026 market and its flagship trade just hit $100 billion
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Money is flooding into equal-weight stock market ETFs this year. Investing experts say it's not a fad.
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Why it matters
Equal-weight strategies spread investment across all 500 stocks rather than concentrating in the largest; a shift toward them signals money moving away from the mega-cap concentration that has dominated recent years.
Most affected
Investors holding concentrated positions in mega-cap tech stocks — Their portfolio weightings diverge from the flows reshaping the broader market. Shareholders in smaller S&P 500 companies — Increased capital allocation to their stocks as equal-weight funds buy them proportionally.
Likely next
Whether equal-weight ETF inflows continue at current pace through 2026 or slow as the year progresses.