Assessing the Invesco S&P 100 Equal Weight ETF (EQWL): A Current Overview

The Invesco S&P 100 Equal Weight ETF (EQWL - Free Report) debuted on 12/01/2006 and is characterized as a smart beta exchange-traded fund (ETF) that aims to provide broad exposure to the Style Box - Large Cap Blend sector of the market.

Understanding Smart Beta ETFs

The ETF landscape has mainly been shaped by products that rely on market capitalization-weighted indices, intended to mirror either the overall market or specific segments. These indices are cost-effective, convenient, and offer transparent methods for replicating market returns, making them suitable for investors who trust in market efficiency.

For those investors inclined towards attempting to outperform the market via strategic stock selection, smart beta funds present an appealing choice. This class of funds is known for its strategies that do not depend on market capitalization weighting.

Smart beta indices strive to select stocks that promise better risk-return profiles based on various fundamental characteristics or a blend of these attributes. Options in this space include several methodologies such as equal-weighting, fundamental weighting, and volatility/momentum-based weighting, though not all guarantee superior returns.

Sponsor and Index Overview

The Invesco S&P 100 Equal Weight ETF has amassed over $1.06 billion in assets, positioning it among the larger ETFs in the Style Box - Large Cap Blend category. Managed by Invesco, this fund aims to replicate the performance of the Russell Top 200 Equal Weight Index.

The S&P 100 Equal Weight Index is crafted to furnish equal-weighted exposure to the top 200 companies within the U.S. equity market.

Cost Considerations

When evaluating ETF investments, expense ratios become a crucial factor in determining a fund's potential returns. Historically, lower-cost funds have the ability to outperform their pricier counterparts assuming all else remains equal.

This ETF boasts annual operating expenses of 0.25%, positioning it similarly to most competitors in the same space. Additionally, its one-year trailing dividend yield stands at 1.86%.

Sector Exposure and Key Holdings

While ETFs are designed to offer diversified exposure and mitigate single-stock risks, examining a fund’s holdings is a beneficial exercise. Most ETFs are transparent and disclose their holdings daily.

The Invesco S&P 100 Equal Weight ETF allocates 17.30% of its portfolio to the Financials sector, followed by notable representation from Healthcare and Information Technology.

Among the individual top holdings, Broadcom Inc (AVGO - Free Report) accounts for about 1.20% of total assets, with General Electric Co (GE - Free Report) and 3M Co (MMM) also being significant contributors. Collectively, the top ten holdings constitute around 11.29% of total assets.

Performance Metrics and Risk Profile

To date, the Invesco S&P 100 Equal Weight ETF has experienced a slight decline of approximately -0.09% for the current year but shows an increase of about 11.48% over the past year (as of 03/13/2025). The fund's trading range over the last 52 weeks has been between $90.17 and $108.28.

EQWL exhibits a beta of 0.96 and a standard deviation of 15.11% over the trailing three years, marking it as a medium-risk option within the sector. The fund effectively mitigates company-specific risks by holding around 102 distinct positions.

Potential Alternatives

The Invesco S&P 100 Equal Weight ETF offers a viable option for investors looking to outperform the Style Box - Large Cap Blend area. However, there are alternative ETFs within the market for comparison.

For instance, both the Vanguard S&P 500 ETF (VOO - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track the S&P 500 Index. The Vanguard S&P 500 ETF manages $584.98 billion in assets, while the SPDR S&P 500 ETF has $591.07 billion. The expense ratio for VOO is 0.03%, while SPY has a rate of 0.09%.

Investors seeking lower-cost, lower-risk options should look into traditional market cap-weighted ETFs designed to match the performance of the Style Box - Large Cap Blend.

Conclusion

For further details about this ETF and others, assess products that meet your investment aims and review articles covering the latest trends in ETF investing.

ETFs, Investments, Performance