Invesco ETFs

Equal weight ETFs

Strike the right investment balance with our equal weight ETFs.

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Balanced exposure

Unlike traditional market-cap weighted ETFs, an equal weight approach ensures that each company, regardless of size, has an equal impact on your portfolio.

Broad diversification

By investing in a wide range of sectors and industries, our ETFs reduce the risk associated with any single stock or sector, thereby enhancing potential returns.

Market leader

We’re a global leader in equal weight ETF strategies, offering the widest and most comprehensive range of products in Europe.

Why investors should consider equal weight ETFs now

We have seen an increase in popularity for equal weight strategies as investors seek ways to diversify and mitigate concentration risk. Recent market turbulence has highlighted the inflated valuations of mega-cap US tech stocks, such as the dominance of the 'Magnificent 7'. Yet this story is not limited to just the US, in most developed markets, concentration levels are at multi-decade highs, with the largest stocks dominating a significant portion of indices. Consequently, investors are increasingly opting for equal weight strategies to achieve a more balanced portfolio. These strategies offer a straightforward, cost-effective solution to reduce exposure to these heavyweights while still participating in the broader equity market. 

The case for equal weight

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, whilst reducing concentration risk through a rules-based, automated process of selling high and buying low. For the long-term investor, equal weight strategies can provide an array of potential benefits.

  • Reduced concentration risk: Avoids excessive weight in the largest companies, helping to avoid the risks associated with potential market bubbles 
  • Exposure to the size factor: Small- and mid-cap companies typically outperform and can contribute more meaningfully in equal weight ETFs
  • “Buy low, sell high”: With a systematic rebalancing schedule that captures the “buy low, sell high” advantage, equal weight ETFs maintain their balanced exposure 
  • Reduced biases: A more balanced sector and country representation, helping to reduce risks

Invesco’s equal weight ETFs

We offer a range of equal weight ETFs providing balanced exposure to broad US, European and World equity exposures, making them an appealing alternative to traditional market-cap weighted indices. 

The US equity market is highly concentrated, with a significant portion of its value focused in a few companies. In the S&P 500, which is weighted by market capitalisation, the top 10 stocks make up 35% of the index value.1 This concentration leads to higher risks, especially since the largest stocks in the index currently trade at a significant premium. An equally weighted index offers a more balanced exposure with much lower average valuation.

Explore Invesco’s low-cost, physical and swap-based S&P 500 Equal Weight UCITS ETFs, designed to offer balanced exposure to the S&P 500 index. 

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The Nasdaq-100 is even more concentrated due to its smaller number of stocks and the dominance of mega-cap tech companies. Investors look to this index for its exposure to more innovative, faster growing stocks. The equal weight version has shown a similarly strong growth profile to its market cap-weighted counterpart, offering innovation without the concentration.

Access the innovators of the Nasdaq-100 index with our Invesco Nasdaq-100 Equal Weight UCITS ETF.

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Concentration in the MSCI World Index recently reached a 40-year high, driven by the weight of mega-cap US stocks. However, concentration is also significant in the non-US portion of the index. The US now accounts for more than 70% of the market-cap weighted index, compared to less than 50% in 2005 and only 40% in the equal-weighted version.1 While concentration has reduced somewhat in European equities, it remains above long-term average levels. Our MSCI World and MSCI Europe Equal Weight ETFs offer a compelling alternative to standard market-cap weighted indices, providing more balanced exposure.

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An investment in this fund is an acquisition of units in a passively managed, index tracking fund rather than in the underlying assets owned by the fund.

Equal weight FAQs

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.

Related insights

  • Footnotes

    1 Invesco, as at 31 March 2025

    Investment risks

    For complete information on risks, refer to the legal documents.

    Value fluctuation: The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

    Equity: The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund.

    Securities lending: The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults.
     

    Invesco Nasdaq-100 Equal Weight UCITS ETF only

    Concentration: The Fund is invested in a particular geographical region, which might result in greater fluctuations in the value of the Fund than for a fund with a broader geographical investment mandate."
     

    Invesco S&P 500 Equal Weight Swap UCITS ETF only

    The Fund’s performance may be adversely affected by variations in the exchange rates between the base currency of the Fund and the currencies to which the Fund is exposed.

    Use of derivatives for index tracking: The Fund’s ability to track the benchmark’s performance is reliant on the counterparties to continuously deliver the performance of the benchmark in line with the swap agreements and would also be affected by any spread between the pricing of the swaps and the pricing of the benchmark. The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.

    Synthetic risk: The fund might purchase securities that are not contained in the reference index and will enter into swap agreements to exchange the performance of those securities for the performance of the reference index.
     

    Important Information

    Data as at April 2025, unless otherwise stated.

    For information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English, French, German), and the financial reports, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.ie. The management company may terminate marketing arrangements.

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change. UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.

    NASDAQ® and NASDAQ-100 Equal Weighted™ Index are trade/service marks of The Nasdaq Stock Market, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by Invesco. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

    For the full objectives and investment policy please consult the current prospectus.

    This product is offered in Belgium under the Public Offer Exemption. This material is intended only for professional investors and may not be used for any other purpose nor passed on to any other investor in Belgium.

    German investors may obtain the offering documents free of charge in paper or electronic form from the issuer or from the German information and paying agent (Marcard, Stein & Co AG, Ballindamm 36, 20095 Hamburg, Germany).

    S&P 500 Equal Weight Index" is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Invesco. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Invesco. The Invesco S&P 500 Equal Weight UCITS ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the "S&P 500 Equal Weight Index

    The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI Inc. ("MSCI"), and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Invesco and any related funds.

    No action has been taken or will be taken in Israel that would permit a public offering of the Fund or distribution of this document to the public. This Fund has not been approved by the Israel Securities Authority (the ISA). The Fund shall only be sold in Israel to an investor of the type listed in the First Schedule to the Israeli Securities Law, 1968, who in each case have provided written confirmation that they qualify as Sophisticated Investors, and that they are aware of the consequences of such designation and agree thereto and further that the Fund is being purchased for its own account and not for the purpose of re-sale or distribution other than, in the case of an offeree which is an Sophisticated Investor, where such offeree is purchasing product for another party which is an Sophisticated Investor. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”). Neither Invesco Ltd. nor its subsidiaries are licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder. This document does not constitute an offer to sell or solicitation of an offer to buy any securities or fund units other than the fund offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person to whom it is unlawful to make such offer or solicitation.

    Additional information for financial intermediaries in the United States: This document is intended for distribution to US financial intermediaries for informational purposes and in relation to their activities with offshore clients only. The Funds are not registered under any US securities law, and may not be offered or sold directly or indirectly in the US, its territories or possessions, nor to any US persons, citizens or residents. The Funds are not offered for sale in any jurisdiction in which the Funds are not authorized to be publicly sold. The Funds must not be marketed on US soil. Invesco Investment Management Limited (IIML) is the manager of Invesco ETFs. IIML will provide promotional services and support to Invesco Distributors, Inc. (“Broker Dealer”) acting on an execution only basis. By receiving the present communication from IIML, the Broker Dealer agrees and confirms that they: (i) will only promote the ETFs to US offshore investors; (ii) are aware the ETFs are not registered for distribution or promotion to US onshore investors; (iii) will comply with the ETFs’ target markets as defined by IIML, and published on etf.invesco.com; (iv) will comply with all local distribution rules, including, but not limited to, private placement US Securities Act for US offshore activities; (v) will provide the necessary information to allow IIML to carry out due diligence on the Broker Dealer; (vi) will complete and maintain sufficient due diligence on their investors to establish and confirm that the investors are not US onshore investors; and (vii) will immediately cease promotion of the ETFs to any investors who they become aware are not US offshore investors and will inform Invesco if this occurs. Issued in the US by Invesco Distributors, Inc., 11 Greenway Plaza, Suite 1000, Houston, Texas 77046, USA. Invesco Distributors, Inc. is the appointed US sub-distributor of Invesco Investment Management Limited, Ground Floor, 2 Cumberland Place, Fenian Street, Dublin 2, Ireland, authorized and regulated by the Central Bank of Ireland. All entities are indirect, wholly owned subsidiaries of Invesco Ltd.

    EMEA4367589/2025