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One of the vital widespread and finest funding recommendation is to spend money on a low-cost S&P 500 index fund. These funds permit buyers to take part within the long-term development of the economic system by buying numerous shares at low value.
Nevertheless, lately some buyers raised issues about a rise in focus of market indexes just like the S&P 500. The S&P 500 is a market cap weighted index. As of August 2025, it accounts for greater than 30% of the S&P 500 as a result of excessive efficiency of a small variety of giant tech firms equivalent to NVIDIA and Microsoft (MSFT).
Equal weight index funds are a method to fight this focus threat. Equal weight funds maintain an equal proportion of every stock that makes up the index, quite than a corresponding index weight.
For instance, NVIDIA (NVDA) is the biggest S&P 500 firm primarily based on market worth as of August 2025. NVIDIA accounts for 7.7% of the S&P 500 as of August 2025.
Nevertheless, for comparable weight S&P 500 index funds, NVIDIA accounts for simply 0.2% of the fund, with every holding being an equal share, which implies it weighs the identical weight as the opposite 500 shares within the fund.
Buyers can select to purchase equal weight funds as a method to cut back their publicity to the most important firms or enhance their positions of much less fairness inside the index. If you happen to’re nervous in regards to the focus stage of your S&P 500, equal weight funding is a method to handle that threat.
Prime equal weight index fund
Under are a number of the finest weight index funds to contemplate in your portfolio.
*Information funding as of August 14th, 2025.
Investco S&P 500 EqualWeightETF (RSP)
The Invesco S&P 500 Equal Weight ETF tracks equal weight S&P 500 indexes and is readjusted quarterly. The fund will increase publicity to small and medium-sized companies and reduces focus threat in comparison with the market cap weighted index.
- 5-year return (annual): 13%
- Price Ratio: 0.20%
- Managed property: $72.4 billion
- Dividend Yield: 1.6%
Goldman Sachs weighs the identical weight as our giant cap fairness ETF (GSEW).
Goldman Sachs tracks weights equal to the US’s giant cap fairness ETFs. This tracks indexes which can be rebalanced every month, equal to the biggest U.S. shares. The fund goals to learn from a variety of market environments and cut back publicity to “remoted market incidents.”
- 5-year return (annual): 12.5%
- Price Ratio: 0.09%
- Managed property: $1.3 billion
- Dividend Yield: 1.5%
Investco Russell 1000 Equal WeightETF (EQAL)
The Invesco Russell 1000 Equal Weight ETF is predicated on the Russell 1000 Equal Weight Index and is rebalanced quarterly. The fund is equally weighted to 11 sectors, with every holding being equally weighted inside every sector.
- 5-year return (annual): 10.8%
- Price Ratio: 0.20%
- Managed property: $672.4 million
- Dividend Yield: 1.7%
Direxion Nasdaq-100 Equal Weighted Index Share (QQQE)
Direxion Nasdaq-100 Equal Weighted Index Sharing is meant to trace the efficiency of the NASDAQ-100 Equal Weight Index. The NASDAQ 100 consists of the 100 largest non-financial firms listed on Nasdaq. The preliminary weighting is about to 1% and is readjusted quarterly.
- 5-year return (annual): 10.9%
- Price Ratio: 0.35%
- Managed property: $1.2 billion
- Dividend Yield: 0.6%
iShares MSCI USA Equal Weighted ETF (EUSA)
iShares MSCI USA Equal Weighted ETFs are meant to trace the efficiency of equal weighted indexes for US shares. The fund gives additional publicity to middleman shares and reduces bias towards giant firms. Over 500 shares are held within the fund.
- 5-year return (annual): 12.2%
- Price Ratio: 0.09%
- Managed property: $1.6 billion
- Dividend Yield: 1.5%
First Belief Dow 30 Equal WeightETF (Edow)
The First Belief Dow 30 equal weight ETF is meant to trace the efficiency of the Dow Jones Industrial Common Equime Weight Index. The fund holds the 30 shares that make up the Dow, which holds them at equal weights, whereas the Dow is price-weighted, with the highest-price inventory making up the biggest share of the index.
- 5-year return (annual): 11.7%
- Price Ratio: 0.50%
- Managed property: $221.5 million
- Dividend Yield: 1.4%
Editorial Disclaimer: All buyers are suggested to conduct their very own unbiased analysis into funding methods earlier than investing determination. Moreover, buyers suggest that previous funding merchandise efficiency shouldn’t be a assure of future worth will increase.