Bringing you live news and features since 2006 

Equal Sector ETF celebrates first anniversary

RELATED TOPICS​

The Alps Equal Sector Weight ETF has outperformed the S&P 500 Index in its first year of operations.

The fund, which was launched on 7 July 2009, generated a total return of 17.06 per cent versus 16.74 per cent for the S&P 500 for the year ended 7 July 2010.

While the concept of equal-weight indexing is not altogether new, Equal Sector investing takes a slightly different approach.

“Most equal-weight indexes are based at the stock level,” says Alps director of investment research and strategy Jeremy Held. “EQL is an important extension of the equal-weight concept in that it specifically addresses sector risk, which we consider to be a much more important and fundamental risk to client portfolios than individual stocks.

“Over the last 30 years the largest annual declines in the S&P 500 have been precipitated by a crash in the market’s largest sector. In 1981 it was energy. In 2000 it was technology stocks. Most recently in 2008 it was the financial sector. An Equal Sector strategy can minimise the negative impact of any one sector. At the same time by offering meaningful exposure to each sector of the market, it allows investors the ability to participate in market rallies regardless of where they occur.”

The fund raised just over USD40min the last year.

Latest News

21Shares AG has announced that the firm has added staking to the 21Shares Cosmos ETP (ATOM) and the 21Shares Avalanche..
EFAMA has published its latest Monthly Statistical Release for May 2024...
Solactive writes that it has expanded its collaboration with Kiwoom Asset Management by providing the underlying indices to the KIWOOM..
MSCI has announced the launch of MSCI Private Capital Indexes, writing that with growing investor interest in private markets, high..

Related Articles

Scott Kefer, VictoryEx Capital Holdings
Bailey McCann writes that active ETFs are capturing investor interest, according to the latest data from Morningstar, which finds that...
Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by