Is iShares MSCI USA Equal Weighted ETF (EUSA) a Strong ETF Right Now?

The iShares MSCI USA Equal Weighted ETF (EUSA) made its debut on 05/05/2010, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Blend category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.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.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexBecause the fund has amassed over $1.52 billion, this makes it one of the larger ETFs in the Style Box - All Cap Blend. EUSA is managed by Blackrock. EUSA seeks to match the performance of the MSCI USA Equal Weighted Index before fees and expenses.The MSCI USA Equal Weighted Index represents the MSCI USA Index, measures the performance of equity securities in the top 85% by market capitalization of equity securities listed on stock exchanges in the United States.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.Operating expenses on an annual basis are 0.09% for this ETF, which makes it one of the least expensive products in the space.The fund has a 12-month trailing dividend yield of 1.49%.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.For EUSA, it has heaviest allocation in the Information Technology sector --about 16.2% of the portfolio --while Industrials and Financials round out the top three.When you look at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 0.33% of the fund's total assets, followed by Oracle Corp (ORCL) and Robinhood Markets Inc Class A (HOOD).EUSA's top 10 holdings account for about 2.51% of its total assets under management.Performance and RiskSo far this year, EUSA has added about 5.67%, and it's up approximately 16.96% in the last one year (as of 08/06/2025). During this past 52-week period, the fund has traded between $82.93 and $102.26.The ETF has a beta of 1.01 and standard deviation of 16.87% for the trailing three-year period, making it a medium risk choice in the space. With about 551 holdings, it effectively diversifies company-specific risk .AlternativesiShares MSCI USA Equal Weighted ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $72.61 billion in assets, Vanguard Total Stock Market ETF has $506.99 billion. ITOT has an expense ratio of 0.03% and VTI 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 - All 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.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 iShares MSCI USA Equal Weighted ETF (EUSA): 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