Larry Berman CFA, CMT, CTA
Invesco S&P 500 Equal Weight Technology ETF
RYT-N
COMMENT
Mar 01, 2021
The viewer was seeking an equal-weight ETF that contained the top 15-20 Canadian tech companies. A market cap weighted ETF of Canadian tech. It is dominated by Shopify, Onyx, CGI. RYT is the American alternative that is equal weight for US large-cap tech that has around 70 names.
RYT vs. VGT. Basket of tech companies, all under equal weight, costing 40 basis points. Compare it to Vanguard VGT, at only 10 basis points, which has the big boys like Apple, Microsoft, Visa, Mastercard, Cisco. Later in the cycle, you want to be in the larger cap names, greater dividend, more defensive, cash flow is better.
To avoid market-cap weighting, consider RYT: the equal-weight tech index which gives you far broader diversification with the top 10 holding amounting to only 16% of this ETF.
The viewer was seeking an equal-weight ETF that contained the top 15-20 Canadian tech companies. A market cap weighted ETF of Canadian tech. It is dominated by Shopify, Onyx, CGI. RYT is the American alternative that is equal weight for US large-cap tech that has around 70 names.