ETF: Compare Equal-Weighted

Investing Strategies Mechanical Investing
1

Mongo -However I MUCH prefer QQQE over QQQ. Much more of a sure thing, vastly lower company specific risk.

Probably true for all five of the Equal-weighted major indices.

**Long-term performance & risk**     INVESCO         INVESCO         INVESCO         INVESCO        DIREXION
                                         RUSSELL           S&P             S&P             S&P           NASDAQ
                                         MIDCAP         LargeCap         MIDCAP         SMALLCAP
                                          1000             500             400             600             100
                                         EQUAL           EQUAL           EQUAL           EQUAL           EQUAL
                                        WEIGHTED        WEIGHTED        WEIGHTED        WEIGHTED        WEIGHTED
                                           ETF             ETF             ETF             ETF             ETF
 
 **EQAL             RSP            EWMC            EWSC            QQQE**

Market Price                                 $46.05         $156.56          $89.26          $77.95          $76.16
                                     4/7/2022 16:10  4/7/2022 16:10  4/7/2022 16:10  4/7/2022 16:10  4/7/2022 16:10
 
**Market Total Return (1 Yr)                    9.73%          12.86%           4.42%           1.06%           4.56%**
                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Market Total Return (3 Yr)                   15.14%          16.81%          14.59%          15.77%          19.47%**
                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Market Total Return (5 Yr)                   12.34%          13.69%          10.74%          11.64%          16.56%**
                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Market Total Return (10 Yr)          --                      13.63%          11.87%          10.66%          15.83%**
                                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Premium/Discount (1 Year Average)             0.02%           0.01%          -0.01%          -0.01%           0.00%**
                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Beta (Month-End 3 Yr)                          1.17            1.10            1.25            1.29            1.01**
                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Standard Deviation (Month-End 3 Yr)           22.10           20.33           24.38           27.13           18.90**
                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Sharpe Ratio (Month-End 3 Yr)                  0.72            0.83            0.65            0.65            1.00**
                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Alpha (Month-End 3 Yr)                        -5.52           -3.14           -6.99           -6.07            0.39**
                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**R2 (Month-End 3 Yr)                           88.67           91.99           82.97           71.47           90.01**
                                     3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022

GD_

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2

Thanks for that list GD_! I didn’t know about the small- and mid-cap EW ETFs.

One minor errata - EQAL tracks the Russell 1000, which (Yahoo Finance says) is the 1000 largest. I agree that it definitely would act more mid-cap than RSP.

(from Yahoo Finance) -
[EQAL] Fund Summary
The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is comprised of all of the securities in the Russell 1000 ® Index, which is designed to measure the performance of the large-cap segment of the U.S. equity market and consists of the stocks of the largest 1,000 U.S. companies by market capitalization.

Tails

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3

Equal-weight ETFs extracted from GTR1 ETF list (styp.a=73). In order of descending MCap.
Eric


**EQUAL-WEIGHT EXCHANGE TRADED FUND                                    Ticker  MCap ($)**
INVESCO S&P 500 EQUAL WEIGHT ETF                                     RSP     3.41E+10
INVESCO S&P 500 EQUAL WEIGHT TECHNOLOGY ETF                          RYT     2.42E+09
FIRST TRUST NASDAQ 100 EQUAL WEIGHTED INDEX FUND                     QQEW    1.19E+09
INVESCO S&P 500 EQUAL WEIGHT HEALTH CARE ETF                         RYH     9.96E+08
GOLDMAN SACHS EQUAL WEIGHT U S LARGE CAP EQUITY ETF                  GSEW    7.84E+08
INVESCO RUSSELL 1000 EQUAL WEIGHT ETF                                EQAL    7.78E+08
DIREXION NASDAQ 100 EQUAL WEIGHTED INDEX SHARES                      QQQE    6.70E+08
INVESCO S&P 500 EQUAL WEIGHT MATERIALS ETF                           RTM     6.10E+08
INVESCO S&P 500 EQUAL WEIGHT ENERGY ETF                              RYE     5.58E+08
INVESCO S&P 500 EQUAL WEIGHT CONSUMER STAPLES ETF                    RHS     5.44E+08
INVESCO S&P 500 EQUAL WEIGHT FINANCIAL ETF                           RYF     5.30E+08
ISHARES MSCI USA EQUAL WEIGHTED ETF                                  EUSA    4.70E+08
INVESCO S&P 500 EQUAL WEIGHT INDUSTRIALS PORTFOLIO                   RGI     4.32E+08
INVESCO S&P 500 EQUAL WEIGHT CONSUMER DISCRETIONARY ETF              RCD     3.88E+08
INVESCO S&P 500 EQUAL WEIGHT UTILITIES ETF                           RYU     3.15E+08
ALPS EQUAL SECTOR WEIGHT ETF                                         EQL     2.40E+08
INVESCO S&P 500 EQUAL WEIGHT REAL ESTATE ETF                         EWRE    1.71E+08
FIRST TRUST DOW 30 EQUAL WEIGHT ETF                                  EDOW    1.40E+08
INVESCO S&P 100 EQUAL WEIGHT ETF                                     EQWL    1.29E+08
INVESCO S&P MIDCAP 400 EQUAL WEIGHT ETF                              EWMC    1.29E+08
PACER CFRA STOVALL EQUAL WEIGHT SEASONAL ROTATION ETF                SZNE    8.57E+07
INVESCO S&P SMALLCAP 600 EQUAL WEIGHT ETF                            EWSC    6.47E+07
FIRST TRUST INDIA NIFTY 50 EQUAL WEIGHT ETF                          NFTY    5.86E+07
ADVISORSHARES DORSEY WRIGHT ALPHA EQUAL WEIGHT ETF                   DWEQ    4.89E+07
INVESCO S&P 500 EQUAL WEIGHT COMMUNICATION SERVICES ETF              EWCO    4.59E+07
INVESCO RUSSELL 1000 LOW BETA EQUAL WEIGHT ETF                       USLB    9.16E+06
INVESCO FTSE INTERNATIONAL LOW BETA EQUAL WEIGHT ETF                 IDLB    6.75E+06
ISHARES MSCI JAPAN EQUAL WEIGHTED ETF                                EWJE    6.66E+06
INVESCO ESG S&P 500 EQUAL WEIGHT ETF                                 RSPE    5.98E+06
IQ ENGENDER EQUALITY ETF                                             EQUL    5.77E+06
DIREXION SHARES ETF TRUST DAILY S&P 500 EQUAL WEIGHT BULL 2X SHARES  EVEN    4.93E+06
INVESCO RUSSELL 1000 ENHANCED EQUAL WEIGHT ETF                       USEQ    3.68E+06
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4

One thing to watch out for is that most equal weight ETFs have a volume near zero, and are therefore likely doomed to a short life span.

And, as a side note, the metrics posted aren’t risk metrics, they’re statistical characterizations of historical price movements.
Not that they’re wrong, but they a very different thing from measures of risk.
Risk is the likelihood of permanent loss of capital, not squiggly charts.

Things that might be worth considering, though they aren’t easy to measure—
What is the largest company specific exposure? Might the companies go bust?
What are the valuation levels like in absolute terms and relative to the historically typical levels of those assets,
and relative to the likely growth rate in metrics of the values of the firms?

Academics like things like monthly price volatility because real risk metrics are difficult.
It makes the math work out nicely, even though it’s largely measuring something meaningless.

Jim

12 Likes
5 
**Long-Term performance & risk(price)**    DIREXION       FIRST TRUST       INVESCO         ISHARES         INVESCO
**Comparison of the broad largeCap indices**     NASDAQ          NASDAQ            S&P            MSCI           RUSSELL
                                                100             100             500             USA            1000
 
**Sorted by TR(3y)                               QQQE            QQEW             RSP            EUSA            EQAL**
 
 
Market Price                                      $76.12         $105.57         $157.64          $84.50          $46.35
                                          4/8/2022 12:20  4/8/2022 12:14  4/8/2022 12:31  4/8/2022 12:28  4/8/2022 11:51
**Market Total Return (1 Yr)                         4.56%           4.25%          12.86%           9.76%           9.73%**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Market Total Return (3 Yr)                        19.47%          19.16%          16.81%          15.77%          15.14%**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Market Total Return (5 Yr)                        16.56%          16.30%          13.69%          13.07%          12.34%**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Market Total Return (10 Yr)                       15.83%          15.56%          13.63%          12.88%  --**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Premium/Discount (1 Year Average)                  0.00%           0.01%           0.01%           0.02%           0.02%**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Beta (Month-End 3 Yr)                               1.01            1.01            1.10            1.11            1.17**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Standard Deviation (Month-End 3 Yr)                18.90           18.92           20.33           20.44           22.10**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Sharpe Ratio (Month-End 3 Yr)                       1.00            0.98            0.83            0.79            0.72**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**Alpha (Month-End 3 Yr)                              0.39            0.14           -3.14           -4.27           -5.52**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022
**R2 (Month-End 3 Yr)                                90.01           90.02           91.99           93.28           88.67**
                                          3/31/2022       3/31/2022       3/31/2022       3/31/2022       3/31/2022

GD_

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