Equal Weight ETFs for Everyone

S&P Capital IQ rates the $151.1 million RCD marketweight. The fund is lower this year, although it slightly outpaced some of its cap-weighted rivals in 2013. The research firm also has a marketweight rating on the $397.2 million Guggenheim S&P Equal Weight Technology ETF (NYSEArca: RYT).

RYT is home to many of the tech and Internet stocks investors have come to love, including Facebook (NasdaqGM: FB), Google (NasdaqGM: GOOG) and Apple (NasdaqGM: AAPL), but those stocks do not even combine for 4.5% of the fund’s weight.

Although the equal weight strategy diminishes RYT’s leverage to large pops in a particular stock, such as the one recently seen in Google, the ETF crushed its cap-weighted rivals last year and has been less bad than those competitors this year. [Google and ETFs]

S&P Capital IQ has an overweight rating on the Guggenheim S&P Equal Weight Healthcare ETF (NYSEArca: RYH).

The $147.1 million RYH is underweight pharmaceuticals and biotech stocks compared to its cap-weighted peers, but the ETF features higher allocations to equipment, services and life sciences providers. All of those sub-sectors have helped bolster the broader health care group this year. [Health Care ETFs Still Delivering]

 

Tom Lydon’s clients own shares of RSP, Apple, Google and Facebook.