Core Insights - Information technology accounted for 34.4% of the S&P 500 at year-end 2025, indicating a concentration risk for investors heavily invested in mega-cap technology stocks [1] - The ALPS Equal Sector Weight ETF (EQL) employs an equal sector investment strategy, allocating approximately 9% to each of the 11 S&P 500 sectors, which helps mitigate concentration risk while maintaining access to quality large-cap companies [2][3] Investment Strategy - EQL caps technology exposure at around 9%, significantly lower than its weight in the cap-weighted S&P 500, while still including major players like Apple Inc., Nvidia Corp., and Microsoft Corp. through the Technology Select Sector SPDR ETF [3] - The equal sector approach also enhances exposure to underrepresented sectors such as energy, materials, real estate, and utilities, each receiving approximately 9% allocations in EQL, compared to less than 3% in the S&P 500 [4] Performance Metrics - EQL has attracted significant investor interest, with net inflows of $22.08 million over the past month and $125.53 million over the past year, bringing total assets to over $589 million [4] - The fund has delivered competitive returns, achieving a 13.5% gain over one year, 15.6% annualized over three years, and 12.8% annualized over five years, outperforming the large cap blend category averages for the three and five-year periods [5] Fund Characteristics - EQL rebalances quarterly to maintain equal sector weights and has a low expense ratio of 0.27% after fee waivers through March 2026, along with a trailing twelve-month yield of 2.42% [6] - Earnings growth is anticipated to broaden across sectors in 2026, which may favor strategies like EQL that offer balanced exposure rather than heavy concentration in technology stocks [7]