Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the ALPS Equal Sector Weight ETF (EQL Quick QuoteEQL - Free Report) is a passively managed exchange traded fund launched on July 7, 2009.

The fund is sponsored by Alps. It has amassed assets over $758.30 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.19%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.35%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 28.9% of the portfolio. Energy and Information Technology round out the top three.

Looking at individual holdings, Alphabet Inc. (GOOGL) accounts for about 4.88% of total assets, followed by Amazon.com Inc. (AMZN) and Exxonmobil Holdings Corp. (XOM).

The top 10 holdings account for about 23.23% of total assets under management.

Performance and Risk

EQL seeks to match the performance of the NYSE Select Sector Equal Weight Index before fees and expenses. The VettaFi Modelist Equal Weight Sector 500 Index seeks to track the performance of U.S. large-capitalization equities by allocating equal weight across economic sectors, while maintaining float-adjusted market capitalization weighting within each sector.

The ETF has added roughly 11.24% so far this year and is up roughly 13.41% in the last one year (as of 09/22/2026). In the past 52-week period, it has traded between $44.77 and $52.50.

The ETF has a beta of 0.84 and standard deviation of 11.91% for the trailing three-year period, making it a medium risk choice in the space. With about 499 holdings, it effectively diversifies company-specific risk.

Alternatives

ALPS Equal Sector Weight ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, EQL is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $851.67 billion in assets, Vanguard 500 Index Fund ETF Shares has $1,061.73 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.