SPDR S&P 500 ETF Trails Equal-Sector Fund as EQL Gains Nearly 5% YTD
ALPS Equal Sector Weight ETF has climbed 4.96% YTD through March 6, while SPDR S&P 500 ETF has fallen 1.4%. Over five years EQL’s 77.03% gain slightly outpaces SPDR S&P 500’s 75.27%, reflecting its 9% cap on technology and equal weighting across 11 sectors.
1. Year-to-Date Performance
ALPS Equal Sector Weight ETF is up 4.96% YTD through March 6, while SPDR S&P 500 ETF has dropped 1.4% over the same period, highlighting the impact of divergent sector exposures on short-term performance.
2. Five-Year Returns Comparison
Over the past five years, EQL has generated a cumulative gain of 77.03%, edging out the SPDR S&P 500 ETF’s 75.27% return despite its structural underweight in the technology sector.
3. Equal Sector Weighting Methodology
EQL holds all 11 Select Sector SPDR ETFs and allocates roughly 9% to each sector, rebalancing quarterly to enforce a cap on technology exposure and ensure equal representation for energy, utilities, real estate and other industries.
4. Tradeoffs and Costs
The equal sector weighting approach limits concentration in mega-cap tech stocks but comes with a higher 0.27% expense ratio, compared with SPDR S&P 500 ETF’s lower fees and a smaller $667 million asset base that can widen bid-ask spreads.