Outstanding Equal-Weight ETFs

Nov 09, 2022 By Triston Martin

Equal-Weight (ETF) managers must judge how many and what kind of shares to purchase for their funds. There are several options for making this decision.

S&P 500 Equal-Weight ETF from Invesco (RSP)

Return over three years, as of April 30, 2022: 12.89%

The ratio of expenses: 0.20%

Assets under management: $32.5 billion as of May 27, 2022.

Date of creation: April 24, 2003

An index ETF to acquire shares in each company in the S&P 500 is the Invesco S&P 500 Equal-Weight ETF (RSP). The S&P 500, which consists of 500 of the biggest companies in the US, is frequently used as a leading indicator of the domestic economy's health.

As an equal-weighted ETF, the fund makes an equal investment in each firm in the index, which results in a portfolio where each company makes up between 0.2% and 0.3% of the total holdings. Dollar Tree Inc., Ford Motor Company, and Devon Energy Corporation are a few of the most significant holdings.

Index Fund First Trust Nasdaq-100 Equal Weighted (QQEW)

Return over three years, as of April 29, 2022: 12.99%

The ratio of expenses: 0.57%

$1.1 billion in assets under management as of May 27, 2022.

Date of creation: April 19, 2006

The Nasdaq-100 index tracks the top 100 largest non-financial companies listed on the Nasdaq. This applies to both foreign and domestic businesses.

For the funds on our list, the cost ratio of 0.57%, or $5.70 for every $1,000 invested, is on the high end, but the fund also has more than $1 billion in assets. Despite being less than a few other funds on our list, this degree of liquidity should still allow you to purchase and sell shares quickly.

Dow 30 Equal Weight First Trust ETF (EDOW)

Return over three years as of April 29, 2022: 8.69%

The ratio of expenses: 0.50%

$130.8 million in assets under management as of May 27, 2022.

Date of creation: August 8, 2017

The First Trust Dow 30 Equal Weight ETF (EDOW), popularly known as the Dow, is a vehicle that focuses on companies that are part of the Dow Jones Industrial Average. Many people view the Dow as a gauge of the state of the country's economy because it consists of 30 giant U.S. corporations.

This fund invests the same amount in each of the Dow's components, even though the Dow is weighted according to the share prices of large corporations.

1 The Home Depot, Chevron, UnitedHealth Group, Apple, and Microsoft are some of the top holdings.

S&P Biotech SPDR ETF (XBI)

Return over three years, as of April 30, 2022: -4.59%

The ratio of expenses: is 0.35

$5.6 billion in assets under management as of May 26, 2022.

Date of beginning: January 31, 2006

An ETF that purchases shares of biotech firms included in the S&P Biotechnology Select Industry index is the SPDR S&P Biotech ETF (XBI). Investors can use the fund to expose themselves to biotech companies expressly. To ensure you are exposed to companies with different market capitalizations, it is not equally weighted but instead uses a modified version of equal weighting.

Aerospace and Defense SPDR ETF (XAR)

Return over three years as of April 30, 2022: 5.9%

The ratio of expenses: is 0.35

Assets under management ($1.3 billion as of May 26, 2022)

Launched on: September 28, 2011

The aerospace and defense sectors of the American economy are essential. As part of its more than $750 billion in yearly defense spending, the federal government frequently grants contracts for billions of dollars to aerospace and defense firms.

You can gain exposure to this enormous sector without making a sizable investment in more powerful defense companies by using the SPDR S&P Aerospace and Defense ETF (XAR). Along with Boeing and Lockheed Martin, the ETF's holdings include Spirit AeroSystems Holdings Inc. and Aerojet Rocketdyne Holdings Inc.

Cybersecurity ETFMG Prime (HACK)

Return over three years as of April 30, 2022: 8.55%

The ratio of expenses: 0.60%

$1.7 billion in assets under management as of May 28, 2022.

Date of creation: November 11, 2014

Global corporations and governments are increasingly concerned about cybersecurity; only in 2021, numerous hacks caused pipelines to be shut down, stolen bitcoin and exposed enormous quantities of private data.

You can invest in cybersecurity companies and technologies through the ETFMG Prime Cyber Security ETF (HACK). This business may be ready to expand and become even more significant as more organizations become aware of the risks posed by hackers.

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