ETF Investing
Explore how our ETFs can be cost-effective tools that help you invest in new possibilities for your clients.
Invesco ETFs
Equal weight ETFs
Strike the right investment balance with our equal weight ETFs.
The case for equal weight
Investor interest in equal weight strategies is rising as concentration risk grows. Market turbulence has exposed stretched valuations in megacap US tech names like the “Magnificent 7,” and similar concentration is evident across developed markets. Equal weight approaches offer a simple, cost-efficient way to reduce heavyweight exposure and achieve more balanced equity diversification.
Reduced concentration risk
Our rules-based process avoids excessive weight in larger companies, helping to avoid the risks associated with market bubbles.
"Buy low, sell high”
A systematic rebalancing schedule captures the “buy low, sell high” advantage to help our equal weight ETFs maintain their balanced exposure.
Reduced biases
A more balanced sector and country representation helps reduce risks and allows small- and mid-cap companies to contribute more meaningfully.
Equal weight ETF suite
Frequently asked questions
Equal weight ETFs are designed to provide exposure to the same constituents as their parent market-cap-weighted indices, but they equally weight each company at the rebalancing date, typically on a quarterly schedule. This approach enhances diversification and risk-adjusted returns, while reducing concentration risk.
By equally weighting each company, both small and large, typically on a quarterly basis, equal weight ETFs avoid excessive weight in the largest companies. This helps to mitigate the risks associated with potential market bubbles and ensures a more balanced exposure across all constituents.
Equal weight ETFs give each constituent in the index the same weight, regardless of its size or market capitalization. Market-cap weighted ETFs differ in that they allocate investments proportionally to the market capitalization of each constituent, meaning larger companies have a greater weighting within the index.
Equal weight ETFs may perform differently depending on market conditions. During periods of growth, smaller companies may drive higher returns, while in times economic downturn, the diversified approach can help mitigate losses.
Equal weight ETFs can track a variety of equal weight indices, including broad regional market indices such as MSCI World, S&P 500, or MSCI Europe.
