There are specific periods where the S&P 500 equal weight outperforms the S&P 500. This generally happens in cycles and has fundamental underpinnings that support smaller stocks. Interesting times when equal weights underperformed have been in the financial crisis when smaller companies were beaten down by the credit environment, and recently last year when the market was anticipating Trump’s tax cuts but were delayed so the excitement over small caps diminished. In 2017, large caps have outperformed small caps by the most since 1999, which historically does not hold.