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

The fund is sponsored by Invesco. It has amassed assets over $925.08 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Large cap companies 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.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.

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 1.77%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 20% of the portfolio. Information Technology and Industrials round out the top three.

Looking at individual holdings, Caterpillar Inc (CAT) accounts for about 1.12% of total assets, followed by Intel Corp (INTC) and Meta Platforms Inc (META).

The top 10 holdings account for about 11% 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 gained about 22.79% so far this year and is up roughly 35.85% in the last one year (as of 11/14/2024). In the past 52-week period, it has traded between $81.60 and $106.69.

The ETF has a beta of 0.97 and standard deviation of 15.57% for the trailing three-year period, making it a medium risk choice in the space. With about 102 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 good 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.