The ALPS Equal Sector Weight ETF (EQL), a smart beta fund with $549.97 million in assets under management, tracks the NYSE Select Sector Equal Weight Index, providing equal exposure across ten major sectors. The fund, which has a 0.25% expense ratio and a medium-risk profile (beta 0.91), has delivered a 9.36% year-to-date return and 10.39% over the past year. EQL's concentrated portfolio of approximately 12 holdings offers a distinct non-cap weighted strategy for investors aiming to outperform the large-cap blend segment.
The ALPS Equal Sector Weight ETF (EQL) is a mid-sized smart beta fund with $549.97 million in assets, offering a distinct alternative to traditional market-cap weighted indices. Its core strategy is to provide equal-weight exposure to ten major economic sectors by holding their corresponding SPDR ETFs, a methodology designed to mitigate concentration risk. The fund's portfolio is highly concentrated at the sector level, with its top ten holdings accounting for approximately 91.65% of total assets. Performance has been solid, with a 9.36% year-to-date return and a 10.39% gain over the past year. From a risk perspective, EQL presents a medium-risk profile, evidenced by a beta of 0.91 and a standard deviation of 14.51% over three years, suggesting slightly lower volatility than the broader market. However, its 0.25% expense ratio is considerably higher than large-cap passive alternatives like IVV or VOO, which charge 0.03%, making the fee a key consideration for total return.
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moderately positive
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0.50
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