RSP

For a core holding component of your portfolio, that is, if you run a "core and satellite" strategy like we generally employ at Chippewa Partners, you might want to own the Rydex S&P Equal Weight ETF. This fund weights its portfolio in equal amounts vs. rewarding larger positions to companies with the biggest market capitalizations. This difference means smaller members of the S&P 500 can influence returns just as much as its largest constituents like General Electric, Microsoft, or Bank of America. And that adds up: This ETF has returned 12.5% over the last three years, two-and-a-half percentage points better than the S&P 500. I pitch this name to everyone, everywhere, in every meeting, in every seminar. When I tell stockbrokers or folks who call themselves financial planners to own it they usually look at me with the same blank stare that I get when somebody mentions the word "calculus" to me. It is a market beater, pure and simple. Do the math, run the historical returns. Small beats big over time, even in the S&P names.