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EWCO (Invesco S&P 500 Equal Weight Communication Services ETF) is no longer actively trading.
This usually means the fund has been liquidated, merged into another product, or its ticker has been retired. Every price, valuation, dividend, and analyst figure on this page is frozen at the last available trading session and reads as historical reference — not a current-day signal.
Invesco has changed the tickers for its suite of equal-weight sector ETFs. Invesco united its lineup of 11 equal-weight sector ETFs with new tickers that connect back to the $33.6 billion Invesco S&P 500® Equal Weight ETF (RSP), effective June 6.
The sectors that have the highest concentration in the largest five companies can benefit most from an equal-weight strategy. An equal-weight strategy can reduce concentration risk in portfolios.
While investors have renewed interest in the tech sector this year, this week, however, the sector lagged with news of PC shipments falling 29% y/y globally in 1Q23 due to excess inventory and decreased consumer demand.
An equal-weight ETF is particularly impactful in the sectors with the highest concentration risk. An equal-weight strategy can reduce concentration risk by weighting each constituent company equally so that a small group of companies does not have an outsized impact on the index.
As markets remain volatile in 2023, investors may be surprised to learn the three sectors posting positive returns year to date. The only three sectors generating positive performance year to date as of March 23 include communication services (+18.1%), information technology (17.2%), and consumer discretionary (+10.0%).
As markets rebound, the two best-performing sectors year to date were the two worst-performing sectors in 2022. Last year's worst-performing sector, communication services, and runner-up, consumer discretionary sector, are up 10.01% and 13.19%, respectively, between January 1 and February 22.
Big tech earnings are in the spotlight this week and next as investors anticipate fourth-quarter results.
This article summarizes the performance of the entire U.S. equity market by examining 1Y, 3Y, 5Y, and 10Y returns for 850+ ETFs across 40 categories. Major indices declined, but investing in Energy, High-Dividend, and Large-Cap Value ETFs softened the blow. Meanwhile, searching for the bottom in mega-cap growth and thematic ETFs didn't work.