News

Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco S&P 100 Equal Weight ETF (EQWL) is a passively managed exchange traded fund launched on 12/01/2006.

The fund is sponsored by Invesco. It has amassed assets over $683.21 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.25%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.92%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector--about 18.10% of the portfolio. Information Technology and Industrials round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 1.52% of total assets, followed by Broadcom Inc (AVGO) and Qualcomm Inc (QCOM).

The top 10 holdings account for about 12.65% of total assets under management.

Performance and Risk

EQWL seeks to match the performance of the Russell Top 200 Equal Weight Index before fees and expenses. The S&P 100 Equal Weight Index is designed to provide equal-weighted exposure to the securities of the largest 200 companies in the US equity market.

The ETF has added about 9.69% so far this year and was up about 20.22% in the last one year (as of 07/10/2024). In the past 52-week period, it has traded between $74.98 and $95.10.

The ETF has a beta of 0.97 and standard deviation of 15.39% for the trailing three-year period, making it a medium risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P 100 Equal Weight ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, EQWL is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $503.75 billion in assets, SPDR S&P 500 ETF has $550.21 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To 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.

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Invesco S&P 100 Equal Weight ETF (EQWL): ETF Research Reports

QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

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SPDR S&P 500 ETF (SPY): ETF Research Reports

iShares Core S&P 500 ETF (IVV): ETF Research Reports

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