A smart beta exchange traded fund, the iShares MSCI USA Equal Weighted ETF (EUSA) debuted on 05/05/2010, and offers broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
EUSA is managed by Blackrock, and this fund has amassed over $1.56 billion, which makes 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 Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are 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.
It has a 12-month trailing dividend yield of 1.56%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 17.2% of the portfolio, the fund has heaviest allocation to the Industrials sector; Information Technology and Financials round out the top three.
When you look at individual holdings, Echostar Corp Class A (SATS) accounts for about 0.29% of the fund's total assets, followed by Rocket Lab Corp (RKLB) and Dollar General Corp (DG).
EUSA's top 10 holdings account for about 2.44% of its total assets under management.
Performance and Risk
So far this year, EUSA return is roughly 4.36%, and is up roughly 10.65% in the last one year (as of 02/12/2026). During this past 52-week period, the fund has traded between $82.93 and $107.97.
The ETF has a beta of 1.00 and standard deviation of 14.47% for the trailing three-year period, making it a medium risk choice in the space. With about 549 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares 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 $82.93 billion in assets, Vanguard Total Stock Market ETF has $587.28 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 Blend
Bottom Line
To 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.
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 Research
