Forbes - Markets
What The E-T-F Happened On August 24?
They say a picture is worth a thousand words. I think this one speaks volumes. In red we have the SPDR S&P 500 ETF (SPY). In blue, we have the Guggenheim S&P 500 Equal Weight ETF (RSP). We can see that SPY and RSP are, normally, fairly highly correlated. And we would expect this, since they invest in the same basket of stocks, just weighted differently. Yet for nearly an hour during the morning on August 24, SPY and RSP diverged in performance by thousands of basis points.
No comments:
Post a Comment