The S&P 500 EWI outperformed the S&P 500 by 2% during the second quarter, continuing the equal weight relative outperformance over 12 months, with the main contributors to performance for an equal weight in the second quarter being the underweight in services. communication and the overweighting of public services, according to S&P Dow Jones indices.
Eight of 11 equal-weighted sectors outperformed their market-cap-weighted counterparts in the second quarter. Sectors where the EWI lagged its cap-weighted peer were healthcare, energy and real estate, which underperformed by 0.2%, 1.9% and 2. 1%, respectively.
This momentum continues after a strong first quarter, in which the S&P 500 EWI outperformed the S&P 500 by 2% in the first three months of the year, according to S&P Dow Jones Indices US Equal Weight Sector Dashboard.
The three equally weighted sector ETFs in Invesco’s lineup that made the largest contributions were Invesco S&P 500 Consumer Discretionary (RCD) Equal Weight ETF, the Invesco S&P 500 Equal Weight Utilities ETF (RYU)and the Invesco S&P 500 Equal Weight Healthcare ETF (RYH).
The RCD, which has $301 million in assets under management, received $34 million in June inflows, partially offsetting outflows seen earlier in the year, which now total $30 million in net outflows. since the start of the year, according to VettaFi.
The RCD provides exposure to the discretionary consumer sector of the domestic economy, making it an available option for investors implementing sector rotation strategies or looking to tilt exposure to a high-beta industry, perhaps -be in anticipation of a bull market, according to VettaFi.
RYU had $29 million in net inflows in June and $155 million in net inflows year-to-date. The fund has total assets of $372 million, according to VettaFi.
This ETF provides exposure to stocks included in the S&P 500 Equal Weighted Utilities Index, which covers the following sectors: electric utilities, gas utilities, multi-utilities, and non-electric electric and water utilities. regulated telecommunications service companies, including landline, cellular, wireless, broadband, and fiber optic cable networks, according to VettaFi.
RYH, with $874 million in assets under management, saw inflows of $10 million in June, bringing total inflows for the year to date to $26 million, according to VettaFi.
RYH provides exposure to the domestic healthcare sector and uses an alternative strategy to access this lucrative asset class. The fund tracks the S&P 500 Equal Weighted Health Care Index, which provides a more balanced exposure to the long-term investor, as it has the added benefit of avoiding the potentially negative impact of rallies or crashes in a sub – specific health care sector.
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