Invesco S&P 500 Equal Weight Index ETF CAD (EQL.TO)

He likes the equal weight index rather than the heavy weight technical index market in the S&P 500 which is market weight. It fits well with the broadening of the market overall.

Underperformed the market-cap-weighted index. You're looking for breadth to widen, and for AI to actually get outside the Mag 7 and start to benefit the other companies. See his Top Picks.

We would suggest EQL.
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Extremely relevant today. The other 493 companies are now going to be able to start to contribute to the S&P 500 performance. Chart looks to be on the verge of a breakout. Fed is now concerned about employment, not inflation. An easing Fed combined with a pickup in PMI numbers should support increasing breadth of outperformance beyond the Mag 7.

The 3 are on different notches on the dial of risk and growth. Allocate your money according to your risk appetite.

ZUE is solid and probably the safest, even though it has enormous exposure to mega-cap tech companies. There are ETFs to downscale your risk from that, such as RSP (equal weight) and EQL.

ZQQ has been excellent for achieving currency-hedged exposure to the NASDAQ 100. So it's even more tech and growth. Huge demand in 2023 and 2024, but (as we've seen) very exposed to downside volatility in the trade war environment.

SOXX is purely semiconductors. Enormous ups and downs on headline risk with generative AI. Even riskier.

Likes the equal weight strategy. Gives you a lower valuation than a straight-up S&P ETF, and less exposure to the technology space.

Mitigates concentration risk from the top 10 names that you usually see in the S&P market-weighted index. Takes you away from the mega-cap stocks. Broader sector participation, more industrials and financials and consumer staples than the market-weighted index.

Down 17% from recent highs, and down to the 200-week MA. Long term, the US economy is a powerhouse and you can't really ever bet against it. It's the strongest and biggest economy in the world, and very resilient. MER is 26 bps. There's also a US version and a hedged version.

A way to get away from the Mag 7 and any volatility associated with those names.

MER of 0.26%. The market rally keeps expanding. A great way to participate.

As an example, the equal-weighted S&P 500 outperformed the market-weighted S&P 500 from mid-2003 until roughly 2014. From 2014 until today, the market-weighted S&P 500 has outperformed its equal-weighted counterpart, and this typically is temporarily reversed in major market drawdowns (2009, 2020, and somewhat 2022). But, overall since mid-2003, the equal-weighted index has slightly outperformed the market-weighted index on a total return basis. 

Given the recent trend of the equal-weight index underperforming the market-weighted index, we would not seek to go against this trend just yet. Although, for an investor with a long-term timeframe and a willingness to see relative underperformance in the near-term, we think the equal-weighted index can outperform over the long term. We like the EQL ETF for a Canadian-denominated equal-weighted S&P 500 ETF.
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Gives you broad diversification in the S&P and avoids depending on the Magnificent 7.

There have been studies conducted that show equal-weighted indices tend to outperform their market-weighted counterparts over the long term. Since the early 2000s, the equal-weighted S&P 500 index has outperformed the market-weighted S&P 500, and it is only over the last several years that market-weighted has demonstrated outperformance. Part of EQL's long-term outperformance can be attributed to the underlying investment actions of 'buy low, sell high', as it will continue to sell winners and add to underperformers. 

As a play on expectations for expanding breadth in the coming years (the remaining 493 companies to see outperformance), we feel this is reasonable, and we expect breadth to improve as we continue into a new bull market. 
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Good option to hedge S&P 500. Equal weighted which makes it a safe bet. Would recommend for the long term investor. Going forward should perform well.