SPDR S&P 500 ETF Trust
Price
$773.17
YTD
+12.85%
Expense
0.09%
Yield
1.25%
🇺🇸 United States
Best Equal Weight ETFs
ETFs that weight all holdings equally instead of by market cap, reducing concentration risk.
Equal Weight: Reducing Concentration Risk
Equal weight ETFs assign the same weight to each holding regardless of market capitalization. In an era where the top 10 stocks can represent 30%+ of cap-weighted indices, equal weighting provides more balanced exposure and reduces the risk of being overexposed to a small number of mega-cap stocks.
🏆 Winner — #1 pick
Vanguard Total Stock Market ETF
Price
$380.93
YTD
+11.92%
Expense
0.03%
Yield
1.32%
Invesco S&P 500 Equal Weight ETF
Price
$220.05
YTD
—
Expense
0.20%
Yield
—
Frequently asked questions
What are equal weight ETFs?
Equal weight ETFs assign the same weight to each holding regardless of market capitalization, reducing concentration risk in mega-cap stocks.
Why use equal weight ETFs instead of cap-weighted ETFs?
They provide more balanced exposure, so your portfolio isn’t dominated by the largest companies that can skew performance.
Which ETF is the top pick for equal weight investing?
SPY (SPDR S&P 500 ETF Trust) is the top pick.
What does SPY track?
SPY tracks the S&P 500 index, providing broad exposure to 500 of the largest U.S. companies across all sectors.
What is the price of SPY?
SPY is priced at approximately $655.83.
What yield does SPY provide?
SPY offers a yield of about 1.25%.
What is the expense ratio of SPY?
SPY has an expense ratio of 0.09%.
Which ETF is the runner-up for broad U.S. equity exposure?
VTI (Vanguard Total Stock Market ETF) is the runner-up.
What does VTI track?
VTI covers the entire U.S. equity market, including small-, mid-, and large-cap stocks for broad diversification.
What is the price of VTI?
VTI is priced at approximately $323.76.
What yield does VTI provide?
VTI offers a yield of about 1.32%.
What is the expense ratio of VTI?
VTI has an expense ratio of 0.03%.
Which ETF explicitly uses an equal-weight strategy?
RSP (Invesco S&P 500 Equal Weight ETF) assigns equal allocation to every stock in the S&P 500.
What is the price of RSP?
RSP is priced at approximately $193.09.
What is the expense ratio of RSP?
RSP has an expense ratio of 0.2%.
What is the main benefit of investing in RSP?
RSP reduces concentration risk by giving every stock in the S&P 500 the same weight, limiting overexposure to mega-cap stocks.
How does equal weighting affect portfolio performance?
Equal weighting can enhance returns when smaller-cap stocks outperform large-cap stocks but may underperform in mega-cap dominated rallies.
Can equal weight ETFs complement traditional cap-weighted ETFs?
Yes, they diversify the portfolio by balancing exposure and mitigating concentration risk in top-performing mega-cap stocks.
What types of investors benefit most from equal weight ETFs?
Investors seeking broader diversification and reduced concentration risk from a few dominant companies.
Are there any downsides to equal weight ETFs?
They may require more frequent rebalancing, which can slightly increase turnover and trading costs compared to cap-weighted ETFs.