Invesco Equally-Weighted S&P 500 assigns an equal weight to each of the stocks in the S&P 500. This pulls it away from the index's largest names and toward the smallest ones--resulting in a persistent market-capitalization bias. It also increases turnover and volatility relative to its cap-weighted parent index. It is difficult to say whether the active bets that result from this approach will be adequately rewarded. As such, both the Invesco S&P 500 Equal Weight ETF and all share classes of the Invesco Equally-Weighted S&P 500 mutual fund are limited to Morningstar Analyst Ratings of Neutral .
Will VADAX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VADAX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the VADAX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of VADAX’s parent organization’s priorities and whether they’re in line with investors’ interests.