Is Invesco Russell 1000 Equal Weight ETF (EQAL) a Strong ETF Right Now?

Launched on 12/23/2014, the Invesco Russell 1000 Equal Weight ETF (EQAL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.What Are Smart Beta ETFs?For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexManaged by Invesco, EQAL has amassed assets over $646.06 million, making it one of the average sized ETFs in the Style Box - Large Cap Blend. EQAL, before fees and expenses, seeks to match the performance of the Russell 1000 Equal Weight Index.The Russell 1000 Equal Weight Index is composed of securities in the Russell 1000 Index and is equally weighted across nine sector groups with each security within the sector receiving equal weight.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Annual operating expenses for this ETF are 0.20%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.56%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.EQAL's heaviest allocation is in the Information Technology sector, which is about 12.50% of the portfolio. Its Financials and Healthcare round out the top three.Taking into account individual holdings, Ubiquiti Inc (UI) accounts for about 0.63% of the fund's total assets, followed by Arista Networks Inc (ANET) and Frontier Communications Parent Inc (FYBR).Its top 10 holdings account for approximately 5.61% of EQAL's total assets under management.Performance and RiskThe ETF has added roughly 4.05% and was up about 16.96% so far this year and in the past one year (as of 02/21/2025), respectively. EQAL has traded between $43.33 and $51.95 during this last 52-week period.EQAL has a beta of 1.11 and standard deviation of 17.70% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 996 holdings, it effectively diversifies company-specific risk.AlternativesInvesco Russell 1000 Equal Weight ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. Vanguard S&P 500 ETF has $630.03 billion in assets, SPDR S&P 500 ETF has $630.47 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Russell 1000 Equal Weight ETF (EQAL): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Arista Networks, Inc. (ANET): Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports Ubiquiti Inc. (UI): Free Stock Analysis Report Frontier Communications Parent, Inc. (FYBR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks