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Invesco Equally-Wtd S&P 500 A VADAX

Analyst rating as of
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Morningstar’s Analysis

Will VADAX outperform in future?

Get our overall rating based on a fundamental assessment of the pillars below.

Adding mid-cap tilt at a cost.

Associate Analyst

Summary

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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 .

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