Is ALPS Equal Sector Weight ETF (EQL) a Strong ETF Right Now?

A smart beta exchange traded fund, the ALPS Equal Sector Weight ETF (EQL) debuted on 07/07/2009, and offers broad exposure to the Style Box - Large Cap Blend category of the market.

What Are Smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

EQL is managed by Alps, and this fund has amassed over $650.94 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the NYSE Select Sector Equal Weight Index.

The NYSE Equal Sector Weight Index comprises of all active Select Sector SPDR ETFs in an equal weighted portfolio. These sector includes Consumer Discretionary, Consumer Staples, Materials, Energy, Technology, Utilities, Financial, Industrial, Health Care & Real Estate.

Cost & Other Expenses

When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.

Operating expenses on an annual basis are 0.27% for EQL, making it on par with most peer products in the space.

EQL's 12-month trailing dividend yield is 1.65%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

When you look at individual holdings, State Street Energy Select Sector Spdr Etf (XLE) accounts for about 10.41% of the fund's total assets, followed by State Street Materials Select Sector Spdr Etf (XLB) and State Street Consumer Staples Select Sector Spdr Etf (XLP).

The top 10 holdings account for about 91.7% of total assets under management.

Performance and Risk

So far this year, EQL has added about 4.96%, and it's up approximately 17.21% in the last one year (as of 03/09/2026). During this past 52-week period, the fund has traded between $37.36 and $49.99.

EQL has a beta of 0.89 and standard deviation of 12.35% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 12 holdings, it has more concentrated exposure than peers .

Alternatives

ALPS Equal Sector Weight ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.

iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard 500 Index Fund ETF Shares (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $731.1 billion in assets, Vanguard 500 Index Fund ETF Shares has $855.14 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend

Bottom Line

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.

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ALPS Equal Sector Weight ETF (EQL): ETF Research Reports

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

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