The AI/megacap growth trade isn't dead. But price action on November 20 suggests even Nvidia's (NVDA) recent earnings report may not provide enough near-term excitement to fuel the tech sector.
Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the ALPS Equal Sector Weight ETF (EQL), a passively managed exchange traded fund launched on July 7, 2009.
Launched on 07/07/2009, the ALPS Equal Sector Weight ETF (EQL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
The ALPS Equal Sector Weight ETF offers equal-weight exposure to all 11 GICS sectors, rebalanced quarterly. Compared to SPY, the weight of technology is divided by about 3, while the weights of materials, real estate, utilities, and energy are multiplied by about 3 to 5. EQL has value characteristics and suits investors seeking diversified sector exposure and lower tech risk, but it has underperformed SPY and two active sector rotation ETFs.
Jefferies, UBS and Citigroup lift S&P 500 targets as strong earnings and Powell's rate cut signals boost optimism.
The Magnificent Seven and a handful of other large-cap growth stocks continue captivating investors' attention. That potentially overshadows opportunities offered by more diverse strategies, including equal-weight ETFs.
Lingering concerns about concentration risk in supposedly diverse cap-weighted domestic equity benchmarks could foster a new wave of interest in equal-weight strategies, including the ALPS Equal Sector Weight ETF (EQL). EQL, which turned 16 years old last month, follows the NYSE Equal Sector Weight Index.
In today's equity market, where a handful of mega-cap names continue to dominate index performance, many investors are reassessing how they gain exposure to large-cap equities. The traditional market-cap-weighted approach, while efficient, increasingly exposes portfolios to concentration risk.
As tech fuels market gains, ETFs in value, gold and consumer staples offer a smart hedge against growing risks.
Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the ALPS Equal Sector Weight ETF (EQL), a passively managed exchange traded fund launched on 07/07/2009.
The ALPS Equal Sector Weight ETF (EQL) was launched on 07/07/2009, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Blend category of the market.
Weighting stocks by market capitalization is said to be a gauge of market participants' collective wisdom. And the methodology has served investors.