The average market value of EQAL’s nearly 1,000 holdings is $27 billion, putting the ETF in a sort of market cap sweet spot where it is not heavily exposed to the volatility associated with small caps while not being too dependent on slower-moving mega-cap stocks.
In fact, just about 30% of EQAL’s holdings are classified as large-caps while over half the ETF’s holdings are mid-caps.
Mid-cap stocks have also outperformed their large-cap peers, but with lower volatility than small caps. Moreover, the returns of mid-cap stocks have also beaten those of small-cap stocks during the trailing three-, five-, and 10-year periods, with lower volatility.
EQAL’s 0.2% annual expense ratio is half that of well-known, broad market equal-weight ETFs.
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