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

Launched on 05/05/2010, the iShares MSCI USA Equal Weighted ETF (EUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.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.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix 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 & IndexThe fund is sponsored by Blackrock. It has amassed assets over $1.43 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. EUSA, before fees and expenses, seeks to match the performance of the MSCI USA Equal Weighted Index.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 ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.With one of the least expensive products in the space, this ETF has annual operating expenses of 0.09%.It has a 12-month trailing dividend yield of 1.44%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.Representing 17.3% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Financials round out the top three.Looking at individual holdings, Western Digital Corp (WDC) accounts for about 0.42% of total assets, followed by Micron Technology Inc (MU) and Warner Bros. Discovery Inc Series (WBD).The top 10 holdings account for about 3.26% of total assets under management.Performance and RiskThe ETF has added about 11.83% so far this year and is up about 6.75% in the last one year (as of 12/12/2025). In the past 52-week period, it has traded between $82.93 and $105.52EUSA has a beta of 1.00 and standard deviation of 14.91% for the trailing three-year period, which makes the fund 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 $80.61 billion in assets, Vanguard Total Stock Market ETF has $572.83 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