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?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.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.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.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexManaged by Blackrock, EUSA has amassed assets over $1.39 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. 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 ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining 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.EUSA's 12-month trailing dividend yield is 1.47%.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.EUSA's heaviest allocation is in the Information Technology sector, which is about 16.9% of the portfolio. Its Industrials and Financials round out the top three.Taking into account individual holdings, Mongodb Inc Class A (MDB) accounts for about 0.29% of the fund's total assets, followed by Pure Storage Inc Class A (PSTG) and Samsara Inc Class A (IOT).The top 10 holdings account for about 2.29% of total assets under management.Performance and RiskYear-to-date, the iShares MSCI USA Equal Weighted ETF has added roughly 9.15% so far, and it's up approximately 9.08% over the last 12 months (as of 10/10/2025). EUSA has traded between $82.93 $103.83 in this past 52-week period. The ETF has a beta of 1.03 and standard deviation of 15.77% for the trailing three-year period, making it a medium risk choice in the space. With about 548 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 $78.55 billion in assets, Vanguard Total Stock Market ETF has $551.44 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.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 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