RSP: The Concentration Unwind Trade Has Arrived; Strong Buy On Equal Weight

Invesco S&P 500 Equal Weight ETF is a strong buy as cap-weight vs. equal-weight divergence reaches a 50-year extreme, even surpassing the dot-com era. RSP offers the same 500 companies as SPY but at a 23% forward P/E discount, with sector diversification reducing mega-cap tech dominance. Quarterly rebalancing captures mean reversion and avoids overpaying for new index additions, while liquidity and trading costs remain favorable.