Is Invesco Russell 1000 Equal Weight ETF (EQAL) a Strong ETF Right Now?

A smart beta exchange traded fund, the Invesco Russell 1000 Equal Weight ETF (EQAL) debuted on 12/23/2014, and offers broad exposure to the Style Box - Large Cap Blend category of the market.What Are Smart Beta ETFs?For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.Fund Sponsor & IndexBecause the fund has amassed over $690.63 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. EQAL is managed by Invesco. EQAL, before fees and expenses, seeks to match the performance of the Russell 1000 Equal Weight Index.The Russell 1000 Equal Weight Index is composed of securities in the Russell 1000 Index and is equally weighted across nine sector groups with each security within the sector receiving equal weight.Cost & Other ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.Annual operating expenses for this ETF are 0.20%, making it on par with most peer products in the space.EQAL's 12-month trailing dividend yield is 1.72%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Information Technology sector - about 13.7% of the portfolio. Industrials and Healthcare round out the top three.Looking at individual holdings, Lumentum Holdings Inc (LITE) accounts for about 0.78% of total assets, followed by Ciena Corp (CIEN) and Ubiquiti Inc (UI).The top 10 holdings account for about 6.15% of total assets under management.Performance and RiskThe ETF has added about 10.42% and is up roughly 9.63% so far this year and in the past one year (as of 10/27/2025), respectively. EQAL has traded between $41.38 and $52.69 during this last 52-week period. The ETF has a beta of 1.00 and standard deviation of 16.27% for the trailing three-year period, making it a medium risk choice in the space. With about 995 holdings, it effectively diversifies company-specific risk .AlternativesInvesco Russell 1000 Equal Weight ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $714.21 billion in assets, Vanguard S&P 500 ETF has $775.39 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap BlendBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Russell 1000 Equal Weight ETF (EQAL): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks