Using the S&P 500 and predecessors since 1930, real total returns, rolling five year returns..

My apologies, I was discussing the Nas 100, I have gone back and looked at the SP. So interestingly to me, the Nas 100 and SP 500 weightings have had opposite performance. Since 1972, the NAS 100 cap weight has outperformed the NAS 100 equal weight by a factor of 3. For the SP 500 since 1972, the SP 500 equal weight has outperformed the SP 500 cap weight by a factor of 2.

Since 1972, the NAS100 equal weight has had about the same performance as the SP500 cap weight. And since 1972, the NAS 100 cap weight has outperformed the SP500 equal weight by about a factor of 1.5. (so in descending order of returns, NAS CW, SP EW, NAS EW, SP CW)

I have posted the graphs here.

discussion.fool.com - ETF compare equal weighted

Almost all of the five year intervals that cap weight had the advantage over equal weight were in just three stretches:
(a) The post war boom, generally five year stretches ending in the 1950s
(b) The tech bubble
(c) The stretches ending since 2017

I agree for the SP500, but for item (b) the NAS 100 CW outperformance over the NAS 100 EW was there from 1972 until one year before the tech bubble and for (c), the NAS 100 CW started outperforming 2013 and is still outperforming the NAS 100EW.

Aussi