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

Launched on 12/23/2014, the Invesco Russell 1000 Equal Weight ETF (EQAL) is a smart beta exchange traded fund offering 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.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexBecause the fund has amassed over $689.05 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. EQAL is managed by Invesco. Before fees and expenses, EQAL 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 ExpensesWhen considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.Annual operating expenses for EQAL are 0.20%, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 1.79%.Sector Exposure and Top HoldingsWhile 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 in the Information Technology sector - about 12.7% of the portfolio. Healthcare and Industrials round out the top three.Looking at individual holdings, Lumentum Holdings Inc (LITE) accounts for about 1.05% of total assets, followed by Ast Spacemobile Inc (ASTS) and Ciena Corp (CIEN).Its top 10 holdings account for approximately 6.25% of EQAL's total assets under management.Performance and RiskYear-to-date, the Invesco Russell 1000 Equal Weight ETF has added about 0% so far, and is up about 10.93% over the last 12 months (as of 01/01/2026). EQAL has traded between $41.38 $53.70 in this past 52-week period. The fund has a beta of 0.97 and standard deviation of 15.52% for the trailing three-year period, which makes EQAL a medium risk choice in this particular space. With about 999 holdings, it effectively diversifies company-specific risk .AlternativesInvesco Russell 1000 Equal Weight ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.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 $761.25 billion in assets, Vanguard S&P 500 ETF has $823.85 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