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Opinions Terry Shaunessy
Invesco S&P Equal Weight ETFEQL.TOPAST TOP PICKDec 09, 2020
Terry ShaunessyStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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There have been studies conducted that show equal-weighted indices tend to outperform their market-weighted counterparts over the long term. Since the early 2000s, the equal-weighted S&P 500 index has outperformed the market-weighted S&P 500, and it is only over the last several years that market-weighted has demonstrated outperformance. Part of EQL's long-term outperformance can be attributed to the underlying investment actions of 'buy low, sell high', as it will continue to sell winners and add to underperformers.
As a play on expectations for expanding breadth in the coming years (the remaining 493 companies to see outperformance), we feel this is reasonable, and we expect breadth to improve as we continue into a new bull market.
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An equal weight holding of RSP. It avoids the FX cost of moving back and forth money with USD. It has outperformed the S&P500 this year.
Terry ShaunessyHe's split his American allocations to half equal weight and half market weight. The top 5 stocks in the S&P500 is almost 20% of the index, which is unprecedented. If you use an equal weight, each stock is 1/500 of the index. EQL would be the one he would look at.
Terry ShaunessyTerry ShaunessyTerry Shaunessy
Mike PhilbrickFANGs have been driving S&P 500. But here, every stock is 1/500th, so it has greater breadth to the US blue chips and far less single stock concentration. Defensive call. Occupies half their US equity allocation. An equal weight ETF is always rotating by selling winners and buying losers, so you want enough breadth, and 500 names is plenty.
Terry ShaunessyA great tool for a Canadian investor to get buy an equal weight S&P strategy without tax complications. The MER is very low and competitive.
Mike Philbrick
