spy vs equal-weight spy

[jim leahy]

<div class="bbWrapper">the spy etf is cap-weighted and therefore has benefited from the recent rise in the largest tech stocks. a possible pairs trade is to compare the spy vs its equal-weight version, rsp. if you compare the relative performance between the 2 etfs, they usually trade in a close range relative to each other. since about mid-march, spy has taken off. the pairs bet is they will return to the mean. during the the last 2 weeks this trade wasn&#039;t looking too good, but it&#039;s now starting to normalize. <br /> <a href="https://forums.aeromir.com/attachments/spy_rsp_pairs-png.4584/" target="_blank"><img src="https://forums.aeromir.com/data/attachments/4/4585-327fa304fff919f31869347d3c41457f.jpg?hash=Mn-jBP_5Gf" class="bbImage " style="" alt="spy_rsp_pairs.png" title="spy_rsp_pairs.png" width="156" height="150" loading="lazy" /></a></div>