ALPS Equal Sector Weight ETF

EQL

Market cap $554M

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.

As bubble fears rise and volatility spikes, investors can turn to ETFs like RSP, GLD and IEMG to diversify and cut concentration risk.

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.

Wall Street warns of an AI equity bubble as mega-cap tech surges, prompting investors to diversify into ETFs for balanced growth.

As of October 8, the top five holdings in basic cap-weighted S&P 500 ETFs combined for 29% of those funds' rosters. Not surprisingly, that's stirred talk about concentration risk.

For an extended period, technology has been the primary driver of S&P 500 and ETF earnings via the Magnificent 7 and a handful of other companies. While that's been a point of contention for some critics, it's hard to argue with returns.

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.

Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the ALPS Equal Sector Weight ETF (EQL) is a passively managed exchange traded fund launched on July 7, 2009.

Goldman Sachs warns of rising AI bubble risks, making diversification with equal-weight, value and quality ETFs a smart defensive move.