The ALPS Equal Sector Weight ETF (EQL) was launched on July 7, 2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market. <\/p>\n
The fund is sponsored by Alps. It has amassed assets over $751.20 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market. <\/p>\n
Why Large Cap Blend <\/p>\n
Large cap companies usually 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. <\/p>\n
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments. <\/p>\n
Costs <\/p>\n
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same. <\/p>\n
Annual operating expenses for this ETF are 0.19%, putting it on par with most peer products in the space. <\/p>\n
It has a 12-month trailing dividend yield of 1.36%. <\/p>\n
Sector Exposure and Top Holdings <\/p>\n
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund’s holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis. <\/p>\n
This ETF has heaviest allocation to the Financials sector — about 23.6% of the portfolio. Information Technology and Materials round out the top three. <\/p>\n
Looking at individual holdings, Alphabet Inc. (GOOGL) accounts for about 5.31% of total assets, followed by Amazon.com Inc. (AMZN) and Exxon Mobil Corp. (XOM). <\/p>\n
The top 10 holdings account for about 23.88% of total assets under management. <\/p>\n
Performance and Risk <\/p>\n
EQL seeks to match the performance of the NYSE Select Sector Equal Weight Index before fees and expenses. The VettaFi Modelist Equal Weight Sector 500 Index seeks to track the performance of U.S. large-capitalization equities by allocating equal weight across economic sectors, while maintaining float-adjusted market capitalization weighting within each sector. <\/p>\n
The ETF return is roughly 10.27% so far this year and is up roughly 16.58% in the last one year (as of 07\/20\/2026). In the past 52-week period, it has traded between $43.81 and $51.22. <\/p>\n
The ETF has a beta of 0.84 and standard deviation of 11.97% for the trailing three-year period, making it a medium risk choice in the space. With about 499 holdings, it effectively diversifies company-specific risk. <\/p>\n
Alternatives <\/p>\n
ALPS Equal Sector 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, EQL is a great 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. <\/p>\n
The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $879.37 billion in assets, Vanguard 500 Index Fund ETF Shares has $974.05 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%. <\/p>\n
Bottom-Line <\/p>\n
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. <\/p>\n
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. <\/p>\n
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<\/a> <\/p>\n ALPS Equal Sector Weight ETF (EQL): ETF Research Reports<\/a> <\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a> <\/p>\n