4 days ago
5
Austin Smith
Tue, March 10, 2026 astatine 12:30 PM CDT 4 min read
-
Invesco S&P 100 Equal Weight ETF (EQWL) returned 281% implicit the past decennary versus iShares S&P 100 Index Fund (OEF) astatine 334%. EQWL is up 1.5% year-to-date portion OEF is down 2.9%. Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) correspond 28% of OEF. Boeing (BA), Citigroup (C), and Visa (V) each clasp astir 1% successful EQWL.
-
Equal-weight rebalancing trims mega-cap winners quarterly and adds to laggards, providing diversification during tech downturns but capping upside during rallies.
-
The expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks. Get them present FREE.
Cap-weighted scale funds person a structural quirk that astir investors overlook: the much a stock's terms rises, the much of your wealth gets automatically funneled into it. With NVIDIA, Apple, and Microsoft present representing astir 28% of the iShares S&P 100 ETF (OEF), owning a cap-weighted large-cap money contiguous means astir 1 dollar successful 3 is riding connected 3 exertion companies. Invesco S&P 100 Equal Weight ETF (NYSEARCA:EQWL) was built to lick precisely that problem, and iShares S&P 100 ETF (NYSEARCA:OEF) is its cap-weighted counterpart.
EQWL holds the aforesaid 100 companies arsenic the cap-weighted S&P 100, but assigns each 1 astir adjacent value astatine each quarterly rebalance. In practice, that means Boeing, Citigroup, and Visa each get astir 1% of the portfolio, portion Nvidia and Apple get the aforesaid attraction alternatively than the outsized positions they clasp successful cap-weighted alternatives. The effect is simply a money wherever nary azygous holding exceeds 1.13%.
The instrumentality motor present is structural rebalancing. Every quarter, EQWL systematically trims positions that person tally up and adds to those that person lagged. This is simply a disciplined, rules-based mentation of "buy low, merchantability high" applied crossed 100 blue-chip companies. Sector vulnerability shifts meaningfully arsenic a result: Financials, Information Technology, and Healthcare each transportation astir 15-17% of the portfolio, compared to Information Technology unsocial commanding 39% successful the cap-weighted OEF.
READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks
Equal weighting has a cost, and the information makes it visible. Over the past decade, EQWL returned 281%, portion cap-weighted iShares S&P 100 ETF returned 334% implicit the aforesaid period. The spread is mostly explained by the mega-cap tech rally of the 2020s, wherever concentrated bets connected Nvidia and Apple generated returns that equal-weight rebalancing would person repeatedly trimmed.
English (CA) · 
English (US) · 
Spanish (MX) ·