EQAL
Invesco Russell 1000 Equal Weight ETF
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So I don’t have a set rule for a core v satellite weighting. It all comes down to what I want to own relative to the broader markets positioning. A good rule is the Pareto 80/20 because you can’t really mess up VOO plus whatever sat at that ratio. The challenge is when you go broader in your core like total market of global market fund and then also buy a broad Satellite like EQAL or something of that nature. I go 60/40 core sat when I have high conviction like the interest rate cycle or hbm explosion. But always keep my broad sector exposure around 90% correlation to the index I’m using as a core. Hope this helps!
Or EQAL - tracks the Russell 1000 while equal weighted. I love it
That's why I am mostly in equal weighted funds like RSP and EQAL. Less upside but less risk.
And EQAL is the Russell 1000 equal weighted
EQAL returned 2% past year. Tough to justify
History shows the small and mid cap stocks outperform large cap stocks over time. But the key phrase here is 'over time'. If looking back just 10 years, then a cap weighted large cap fund will be the outperformer. But the relative performance of the different classes changes places over time and small and mid cap will be the outperformers in the future. Long term investors have found that the best time to buy small and mid cap stocks is during a long period of underperformance. When the small and mid caps stocks snap back, the gains are usually very large. A good choice to position ones self to take advantage of these historical trends is the [EQAL](https://finance.yahoo.com/quote/EQAL/?p=EQAL) ETF. This equal weighted ETF has the 1000 biggest stocks in the USA stock market. It includes all the stocks in S&P 500 along with mid cap and small cap stocks. The mega cap [Wall Street Darlings](https://swingtrader.trading/definitions/#darling) are in there but they are not skewing the index value.
I wish there was an ETF that chopped off the top 10 stocks by market cap. Rob Arnott, and Fama and French, have both research showing today's 10 stocks tend to have disappointing results going forward. companies rarely stay on top more than a decade, so you're typically buying stocks at peaks before they decline. equal weight ETFs might hit the spot. EQAL is an equal weight Russell 1000 so gets you more mid-cap stocks than the S&P 500. Arnott's 'fundamental indexes' like FNDX might also be a good fit. they weight stocks by dividends, revenues, etc ... not simply by market capitalization. so the top 10 looks different from VOO.
That’s why I only get equal weighted indexes like EQAL and RSP.
I think the reason for this is the sector allocation between tech and non-tech. Currently VOO is much higher % tech than RSP and recently tech has been driving a lot of the gains in both. For that reason, I am not a fan of RSP/EQAL as an alternative to VOO. However, I do think there should/could be some benefit in using individual sector equal weight funds like RSPF or RSPD or RSPT. What is the ideal allocation between the sectors? Is it the current allocation that you would find in VTI or VOO? hmmm.... Who could determine that?? Has that been determined?? If one accepts the unchallenged greatness of VTI or VOO, then they contain the magic true best allocation ratios between the various sectors. But how much utilities (for example) do you want to own if your goal is to maximize long term gains over a 10+ year horizon? How much basic materials? VTI says you should have 2.5% materials, while RSP has 4.4% materials. VTI has 28% tech and RSP has 15% tech. --- WHICH is best????
Yo bro, I feel ya on the overweight in big cap tech. I've been trimming my positions in $GOOGL and $AAPL as well, but I'm also considering adding some value plays to my portfolio. I like your idea of diversifying with funds like $ACES, $SMH, and $EQAL. I also think adding some bond and REIT positions like $BOND and $INDS would be a smart move. Overall, I think it's important to have a well-rounded portfolio, but also be prepared to adjust your positions based on market conditions. Good luck on your diversification journey!
It's because I bought RSP and EQAL that are both equal weighted index funds. Sorry.
I love these. I own that and EQAL, feel very good about them long term.
If you don't want to be too heavily invested in TSLA, Apple, Microsoft, Google, etc. then equal weighted funds like RSP, EQAL, or QQEW are good.
don't gamble with your retirement. The safest thing to do is buy a broad market index fund, like VFIAX, VOO, or EQAL. If you don't know what you're doing, the worst thing to do is guess, or assume that someone else's hot stock picks are going to make you money.