After being dominated by mega-cap tech, the ‘average’ stock is making a comeback — how to play it

first_imgThe broader U.S. market is seeing a larger number of shares do well after being dominated by a handful of mega-cap names for most of 2020, signaling a comeback for the so-called average stock.The Invesco S&P 500 Equal Weight exchange-traded fund (RSP) has jumped more than 6% this week, while the SPDR S&P 500 ETF (SPY) is up just 1.8% over that time period. Those gains helped the RSP narrow its year-to-date performance gap against the SPY.Those gains came as investors cheered positive coronavirus vaccine news that lifted expectations of a broad economic recovery, shifting money away from tech giants such as Amazon and Microsoft and into beaten-down names such as United Airlines and cruise operator Carnival. But for investors who want to ride this market shift, but in a less risky way, the RSP could be the way to go. Traders work the floor of the New York Stock Exchange.NYSE – Advertisement – – Advertisement – – Advertisement –last_img

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