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For the past few years, most of the gains seen by major U.S. equity indexes such as the S&P 500 and the Nasdaq composite were driven by a handful of megacap stocks. But recently, that dynamic has started to change.
As a result, the benchmark S&P 500 SPX, the market-cap-weighted index that’s defined the U.S. stock market for generations of investors, is underperforming its equal-weighted sibling XX:SP500EW by the widest margin at this point in the year since the early 1990s.