Investors looking to tap the discretionary sector via a broad market ETF should consider the newly minted PowerShares Russell 1000 Equal Weight Portfolio (NYSEArca: EQAL).
The new ETF offers investors an evolved approach to the prosaic equal-weight ETFs that currently populate the market. EQAL tracks the Russell 1000 Equal Weight Index, which applies an equal weight to nine sectors and then assigns an equal weight to each security from those sectors. [New ETF, New way to Eqaul Weighting]
EQAL allocates 11.6% of its weight to the discretionary sector and since no stock accounts for more than 0.3% of the fund’s weight, EQAL is far from vulnerable to single stock risk. The ETF has been a hit with investors. Just two months old, EQAL had $126.1 million in assets under management as of Feb. 24. For the week ending Feb. 24, investors poured $46.6 million into EQAL.
Guggenheim S&P Equal Weight Consumer Discretionary ETF