Q: I am considering making an investment in this ETF. I understand that it basically follows the returns of the S & P 500 and is equally weighted. Any information you may have on this ETF would be appreciated. Do you consider it a good investment. I look forward to your timely comments. Thank You.
5i Research Answer:
We don't have much to be critical of regarding EQL. It is large, has a low fee and the underlying fund it holds is RSP in the US. The only caveat we might have is that over the last few years, it will have underperformed market-cap weighted indices due to the outperformance of mega-caps. So, while it is a passive, equal weight approach, an investor is making an active decision on how they want to be exposed tot he MAG-7 type of stocks.