A sound investment process and strong management team underpin Invesco S&P 100 Equal Weight ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

General Electric

NextEra Energy

General Motors

Amgen

Charles Schwab

Goldman Sachs

Raytheon Technologies

PayPal

Southern Company

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Invesco S&P 100 Equal Weight ETF earns a High Process Pillar rating. 

The leading factor in the rating is the fund's excellent long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. This fund tracks an index, which also increases its process rating. Historical data, such as Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. 

 This strategy skews toward larger, higher-growth companies than its average peer in the Large Value Morningstar Category. Analyzing additional factors, this strategy has consistently tilted toward companies with relatively higher trading volumes in the last few years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. Different from its historical appetite, however, the strategy was less exposed to the Liquidity factor compared with Morningstar Category peers in the most recent month. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. Such exposure tends to pay off when markets are hot and to be costly when they are not. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, this strategy has shown a tendency to hold fewer stocks with high dividend or buyback yields over peers in recent years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. In recent months, the strategy also had less Yield factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in communication services and consumer cyclical relative to the category average by 3.4 and 3.1 percentage points, respectively. The sectors with low exposure compared to category peers are energy and utilities, with energy underweighting the average portfolio by 5.0 percentage points of assets and utilities similar to the average. The strategy owns 102 securities and is less top-heavy than peers. Specifically, 10.9% of the strategy's assets are concentrated within the top 10 fund holdings, as opposed to the typical peer's 27.4%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 17% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

High

Process

Invesco’s equity team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are four managers listed on the fund: Peter Hubbard, Tony Seisser, Michael Jeanette, Pratik Doshi. Experience on the team is abundant, with 12 years of average portfolio management experience. Together, they manage a total of 145 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

Invesco succeeds in a number of areas but also has its share of subpar offerings, along with many others that land somewhere in the middle. A mid-2023 change of CEO, from longtime chief Marty Flanagan to veteran Invesco executive Andrew Schlossberg, is noteworthy, and several other executives retired or departed in 2023. Portfolio-manager shuffles aimed at bolstering poor performers, which began under Flanagan, have continued under Schlossberg, who told Morningstar his most important aim is bolstering “investment quality.” However, major changes of direction or approach are unlikely. The firm retains a Morningstar Parent rating of Average. 
Invesco’s international-equity teams in Texas and New York remain solid. However, the extensive U.S.-equity lineup needs improvement. Fixed-income offerings run the gamut: The multisector and short-term-bond areas are good, but corporate high-yield is less impressive. The firm’s exchange-traded fund lineup includes the popular Nasdaq-focused QQQ; passive strategies make up around 37% of Invesco’s assets under management. Invesco has not been averse to trying new types of strategies, and it was among the firms that immediately launched a spot bitcoin ETF after SEC approval in early 2024.
The picture outside the United States is mixed. Fund performance has been subpar in Asia, and while the picture has brightened in the United Kingdom and Europe, that region still can’t be considered a strength.

Average

Parent

Invesco S&P 100 Equal Weight ETF

EQWL tracks the an equally-weighted index composed of the 100 largest companies in the US equity markets.

Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Invesco S&P 100 Equal Weight ETF (EQWL) is a smart beta exchange traded fund launched on 12/01/2006.

Is Invesco S&P 100 Equal Weight ETF (EQWL) a Strong ETF Right Now?

Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Invesco S&P 100 Equal Weight ETF (EQWL) is a passively managed exchange traded fund launched on 12/01/2006.

Should Invesco S&P 100 Equal Weight ETF (EQWL) Be on Your Investing Radar?

EQWL assigns an equal weight each quarter to the top 100 stocks in the S&P 500 Index. Its expense ratio is 0.25%, and EQWL has $550 million in assets. This asset base is small, possibly because EQWL has changed Indexes four times since its December 2006 launch. Still, performance after its latest Index change is impressive. By holding only the top 100 stocks, EQWL's quality remains high, even featuring a lower valuation and higher estimated earnings growth than RSP, a direct competitor.

EQWL: A Better Large Cap Equal Weight ETF Than RSP

The sectors with the best value scores are energy, real estate and financials, whereas industrials and technology are the most overvalued. The market is skewed by mega-cap companies: measuring the bias with Invesco S&P 100 Equal Weight ETF. 7 stocks cheaper than their peers in February 2024.

February Dashboard, And Measuring The Mega-Cap Bias With EQWL

EQWL's investment mandate is to track the S&P 100 Equal Weight Index, a recalibrated version of the S&P 100. EQWL will more likely appeal to investors who are somewhat skeptical about the $1 trillion league and would like to have larger exposure to old-economy bellwethers. The weighting schema of its underlying index made the issue of U.S. overvaluation a bit less acute, and, most importantly, it was achieved without compromising on quality.

EQWL: An Alternative, Value-Ish Take On U.S. Bellwethers

Invesco S&P 100 Equal Weight ETF is an equity exchange-traded fund that invests in the largest 100 U.S. stocks. EQWL has outperformed the S&P 500 equal-weight peer RSP, with a total return of over 10% in 2023. EQWL has attractive valuation levels and a large cap tilt, making it a more appealing option than SPY or RSP.

EQWL: A Lesser-Known Equal Weight Fund With A Large Cap Tilt

EQWL is an ETF that takes a different approach to investing in mega-cap U.S. stocks. Namely, it limits its holdings to 100 names, and owns them in equal portions. At a time when market capitalization-weighted ETFs have dominated equal-weighted indexes for years, EQWL can benefit from a trend change.

EQWL: An Alternative Way To Own The Largest U.S. Stocks

ProShares Short QQQ

ProShares UltraShort QQQ

ProShares Ultra QQQ

First Trust NASDAQ-100 Equal Weighted Index Fund

Invesco QQQ

Direxion NASDAQ-100 Equal Weighted Index Shares

First Trust NASDAQ-100 Ex-Technology Sector Index Fund

ProShares UltraPro Short QQQ

ProShares UltraPro QQQ

Where The Nasdaq Bull Will Stop

Inspire 100 ETF

Axs Change Finance ESG ETF

Cornerstone Total Return Fund Inc

ProShares Ultra Dow30

SPDR Dow Jones Industrial Average ETF

Trns DS S&P 500 Shs

ProShares Short Dow30

Davis Select U.S. Equity ETF

ProShares UltraShort Dow30

First Trust Dow 30 Equal Weight ETF

Swedish Exp Cred ELEMENTS

WisdomTree U.S. Earnings 500 Fund

ALPS Equal Sector Weight ETF

ESGL Holdings Ltd

First Trust Large Cap Core AlphaDEX Fund

Madrna Domestic Shs Madrona Domestic

Goldman Sachs Equal Weight U.S. Large Cap Equity ETF

First Trust Horizon Managed Volatility Domestic ETF

iShares Core S&P 500 ETF

iShares Russell Top 200 ETF

iShares Russell 2000 ETF

John Hancock Multifactor Large Cap ETF

iShares Morningstar US Equity ETF

Prncpl SusMmnt Shs

Just recently, CNBC ran an article touting the call of "Billionaire Investor Ron Baron" of the Dow reaching 650,000 in just 50 years.

Dow 650,000? We Are Already There!

It is important to separate economic contractions, which we call recessions, and market crashes. Economic recessions have a much greater impact on investment portfolios than so-called stock market crashes.

2 Questions: Length Of Recession, Near-Term Strategy Choices - Weekly Blog # 600

News for Invesco S&P 100 Equal Weight ETF ETF (EQWL)