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Stockchase Opinions

Stan WongInvesco S&P 500 Equal Weight ETFRSPBUYMar 12, 2026

FHSA ideas.

As long as you have 4-5 years before the home purchase, you can be in an equity strategy. Equities can be volatile.

For Canadian exposure, VDY or XEI makes sense -- high dividends tend to do well in Canada. Lots of options in the US, but he'd stick to equal-weight (not market-weight) ETFs. S&P 500 is still 45% tech and communications, and that's a bit risky at this point. Consider RSP.

For European exposure go for a broad-based approach such as in VIDY.

$194.48

Stock price when the opinion was issued

$213.62

As of Jun 15, 2026. Market Open.

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He didn't like tech last year for good reason. So, he moved into equal weight. He likes the market, not tech.

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ZUE vs. ZQQ vs. SOXX

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.

BUY

This has definitely been on an uptrend, 9% the past quarter. Data this week certainly helps: PCE was soft, GDP was in-line, PPI is soft, all pointing to disinflation.

WEAK BUY

RSP is not overly exposed to just tech and communications. IWM at market weight has performed much better than RSP. But we're hopefully going to see some rotation. RSP is a great idea, and there are similar tickers that trade on the Canadian side.

IWM has the smallest 2000 companies out of the Russell 3000, underperforming. Small cap should perform better with steady or falling interest rates, as they tend to be more levered.

His portfolio style favours the mid- and large-cap names, but small caps can do well in a lower-rate environment.

WEAK BUY

She likes smallcaps. If the market rotates from the mega stocks, small caps could benefit.

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There is still a strong case for equal weight to outperform. This is a call on big tech being very highly valued right now. It depends on inflation or deflation however. Still thinks the average stock will out perform market cap weighted.
PAST TOP PICK

(A Top Pick May 15/19, Up 1%) Equally weighted as opposed to market weighted. They bought this one to get away from the tech stocks. Since recommended here Invesco has listed an equal weight ETF for the S&P 500 in Canadian dollars on the TSX (EQL-T).

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It de-emphasizes the tech dominance of the S&P 500. This uses an equal weight, giving more exposure to industrials, financials and healthcare where these sectors will do well. Best to own in a registered account.

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(Top Pick Jan 14/14, Up 12.59%) Equally weighted indexes tend to outperform in the mid to late part of the cycle.

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(A Top Pick July 24/13. Up 21.17%) because this is such a broad ETF, rather than being market capped, each constituent is 1/500 of this index, so there is a bias to smaller, large-cap stocks, which tend to be the more growth part.

PAST TOP PICK

(A Top Pick Feb 20/13. Up 24.91%.) This gives you access to the S&P 500, equal weight. The whole idea here is that you want to own the markets with investment vehicles that outperform the market.

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Each portion of this is worth 1/500. The main reason you want to move to an equally weighted index at this point in time is that as this market progresses, the breadth of the market and the number of stocks participating widens and widens, which is why these equally weighted indexes and ETFs tend to outperform their underlying benchmarks.

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It is the breadth of this market that he likes so much. This has already started to outperform, pretty substantially, the underlying S&P index.

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An equally weighted portfolio of S&P 500 stocks. Historically seasonality is very good relative to the S&P 500. S&P 500 is heavily weighted in technology, which does very poorly this time of year, whereas this stock, because it is equally weighted, is not as sensitive to technology.

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S&P Equal Weight ETF. This has a heavier concentration in Industrial, Materials and Consumers Discretionary Sectors, which usually have strong seasonality from the end of January until May. (Hasn’t bought yet. Waiting for the market to start correcting.)