The Invesco S&P 100 Equal Weight ETF offers a unique investment opportunity in large-cap stocks
City: New York. So, the Invesco S&P 100 Equal Weight ETF, or EQWL for short, launched back in December 2006. It’s designed to give you broad exposure to large-cap stocks in the U.S. market.
This fund is backed by Invesco and has gathered over $969 million in assets, making it one of the bigger players in the large-cap blend space.
Now, why should you care about large-cap blend stocks? Well, these companies usually have market caps over $10 billion. They’re generally stable and have predictable cash flows, which means they’re less likely to be super volatile compared to smaller companies.
Blend ETFs, like EQWL, mix growth and value stocks, giving you a bit of both worlds. It’s a smart way to diversify your investments.
When you’re looking at ETFs, keep an eye on the expense ratio. Lower costs usually mean better returns. EQWL has an expense ratio of 0.25%, which is pretty standard for its peers.
It also offers a 12-month trailing dividend yield of 1.84%, which is a nice perk for investors.
Even though ETFs spread out your risk, it’s still wise to check what’s in the fund. EQWL has a big chunk of its portfolio—about 18.6%—in the Financials sector, with Information Technology and Healthcare following closely.
In terms of individual stocks, Broadcom makes up about 1.29% of the fund, along with Pfizer and 3M. The top ten holdings account for around 10.88% of the total assets.
EQWL aims to match the performance of the Russell Top 200 Equal Weight Index. So far this year, it’s up about 1.22% and has seen a 21.05% increase over the past year. It’s traded between $86.87 and $107.72 in the last 52 weeks.
With a beta of 0.97 and a standard deviation of 15.43% over the last three years, it’s considered a medium-risk option. Plus, it has around 102 holdings, which helps reduce the risk tied to any single company.
EQWL has a Zacks ETF Rank of 3, which means it’s a hold. If you’re looking for large-cap blend exposure, it’s a solid choice. But there are other options too, like the iShares Core S&P 500 ETF and the SPDR S&P 500 ETF, which track similar indices.
Passively managed ETFs are gaining popularity among both institutional and retail investors. They’re low-cost, transparent, and flexible, making them great for long-term investing.
If you want to dive deeper into ETFs, check out Zacks ETF Center for more info and articles on the latest trends.
