Should Invesco S&P 100 Equal Weight ETF (EQWL) Be on Your Investing Radar?

If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Invesco S&P 100 Equal Weight ETF (EQWL), a passively managed exchange traded fund launched on 12/01/2006.

The fund is sponsored by Invesco. It has amassed assets over $1.34 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.25%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.88%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector--about 19.10% of the portfolio. Information Technology and Industrials round out the top three.

Looking at individual holdings, Palantir Technologies Inc (PLTR) accounts for about 1.48% of total assets, followed by Netflix Inc (NFLX) and Booking Holdings Inc (BKNG).

The top 10 holdings account for about 11.87% of total assets under management.

Performance and Risk

EQWL seeks to match the performance of the Russell Top 200 Equal Weight Index before fees and expenses. The S&P 100 Equal Weight Index is designed to provide equal-weighted exposure to the securities of the largest 200 companies in the US equity market.

The ETF has gained about 2.75% so far this year and is up roughly 12.33% in the last one year (as of 05/22/2025). In the past 52-week period, it has traded between $91.62 and $108.28.

The ETF has a beta of 0.95 and standard deviation of 15.95% for the trailing three-year period, making it a medium risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P 100 Equal Weight ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, EQWL is an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.

The SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 ETF (VOO) track a similar index. While SPDR S&P 500 ETF has $592.73 billion in assets, Vanguard S&P 500 ETF has $641.63 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research