Equal-weight strategies such as the Invesco S&P 500® Equal Weight ETF (RSP), which tracks the S&P 500 Equal Weight Index, are favored for their diversification benefits, outperformance, and tilt towards value, but many investors are unaware that the increased exposure to smaller companies heightens volatility. Non-farm payrolls rose 528,000 for the month and the unemployment rate was 3.5%, easily topping the Dow Jones estimates of 258,000 and 3.6%, respectively. Equal-weight indexes have historically outperformed their market cap-weighted peers, including during periods of rising inflation.