Rydex S&P Equal Weight ETF (RSP-N)

(A Top Pick May 15/19, Up 1%) Equally weighted as opposed to market weighted. They bought this one to get away from the tech stocks. Since recommended here Invesco has listed an equal weight ETF for the S&P 500 in Canadian dollars on the TSX (EQL-T).

It de-emphasizes the tech dominance of the S&P 500. This uses an equal weight, giving more exposure to industrials, financials and healthcare where these sectors will do well. Best to own in a registered account.

(Top Pick Jan 14/14, Up 12.59%) Equally weighted indexes tend to outperform in the mid to late part of the cycle.

(A Top Pick July 24/13. Up 21.17%) because this is such a broad ETF, rather than being market capped, each constituent is 1/500 of this index, so there is a bias to smaller, large-cap stocks, which tend to be the more growth part.

(A Top Pick Feb 20/13. Up 24.91%.) This gives you access to the S&P 500, equal weight. The whole idea here is that you want to own the markets with investment vehicles that outperform the market.

Each portion of this is worth 1/500. The main reason you want to move to an equally weighted index at this point in time is that as this market progresses, the breadth of the market and the number of stocks participating widens and widens, which is why these equally weighted indexes and ETFs tend to outperform their underlying benchmarks.

It is the breadth of this market that he likes so much. This has already started to outperform, pretty substantially, the underlying S&P index.

An equally weighted portfolio of S&P 500 stocks. Historically seasonality is very good relative to the S&P 500. S&P 500 is heavily weighted in technology, which does very poorly this time of year, whereas this stock, because it is equally weighted, is not as sensitive to technology.