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Cinthia Murphy and Nathan Geraci highlight growing investor interest in equal-weight ETFs as market concentration risks decrease.
Investors are increasingly turning to equal-weight exchange-traded funds (ETFs) to mitigate concentration risk as the dominance of mega-cap technology stocks begins to wane. Unlike market-capitalization-weighted funds, equal-weight ETFs assign the same weight to every company in an underlying index, allowing smaller constituents to have a greater influence on portfolio performance. Cinthia Murphy, director of research at VettaFi, noted that the strategy has gained significant attention as the