Not All S&P 500 ETFs are the Same

EQL “takes a distinct approach to equal weighting the S&P 500 Index. EQL holds the nine Select Sector SPDRs, covering the 10 sectors of the S&P 500 index (telecom services is part of the technology ETF). While it also rebalances every three months like RSP, the sector exposure it provides is different than it is for RSP and for IVV,” according to S&P Capital IQ. [All Sectors the Equal-Weight Way]

In addition, EQL received an Overall 4 Star Morningstar Rating as of February 28, 2015 against 34 of U.S. ETF Large Blend Funds based on risk adjusted returns, according to a statement issued by ALPS. EQL applies equal weighting to the nine sector SPDR ETFs from State Street Global Advisors.

EQL is up 60% over the past three years.

Guggenheim S&P 500 Equal Weight ETF

Tom Lydon’s clients own shares of RSP, SPY and IVV.