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Equal Weight

The Equal Weight Advantage

Equal weight investing is a smart beta strategy that does exactly what its name implies—it equally weights every stock in the strategy regardless of how small or large it is. An equal weight strategy creates unbiased exposure to all stocks—no one stock is more important than any other. Equal weight investing is very different from the traditional cap-weighted method—where each stock is weighted based on its size (or market capitalization). Cap-weighting often results in favoring the largest stocks in the strategy, resulting in a few stocks dominating the rest and increasing concentration risk. Investors who want to invest in a broad market index, but don’t want their investment to be dependent on the performance of a few large companies, may find an equal weight strategy to be a good choice.
Find out how the combination of balanced exposure to all stocks and a disciplined quarterly rebalance can lead to outperformance potential for equal weight strategies. Visit equalweight.com.

Equal Weight ETF

CFRA Sector Insights
(For financial professional use only)

Monthly equal weight sector performance and insightful commentary from CFRA’s Sam Stovall.



The broad diversification of equal weight strategies does not assure a profit or eliminate the risk of loss. Investing involves risk, including the possible loss of principal. When large-cap securities are in favor or in severe market downturns, an equal weight strategy may under perform a cap-weighted strategy. Increased exposure to smaller companies may increase volatility, and equal weight strategies could have higher portfolio turnover than cap-weighted strategies which may increase expenses.

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Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.

Investing involves risk, including the possible loss of principal.

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