ETF of the Week: Invesco Russell 1000 Equal Weight ETF (EQAL)

ETF Trends CEO Tom Lydon discussed the Invesco Russell 1000 Equal Weight ETF (EQAL) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. EQAL is a variation on Invesco’s popular equal-weight S&P 500 ETF, taking the 1000 largest U.S. stocks in the Russell index and assigning them equal weight in the portfolio. The result is a sector and size mix that diverges significantly from the traditional index fund. Adherents of equal weighting argue that it eliminates the market-cap bias built into traditional indexes. At the same time, critics say that equal-weighting is just another way of tilting toward smaller companies in a portfolio.