RWL - RWL: A Better Alternative To Market-Cap Weighted S&P 500 Exposure

2024-02-15 15:14:12 ET

Summary

• Invesco S&P 500 Revenue ETF offers exposure to large caps while reducing mega-cap tech risk through a revenue-oriented focus.
• The RWL ETF's unique revenue-weighted approach re-weights components of the S&P 500 Index based on revenue generated by companies.
• Top holdings of RWL include Walmart, Amazon, Berkshire Hathaway, Apple, and CVS Health, with a sector allocation that is more value-tilted.

I've been very public about the concerns I have with the market-cap weighting methodology in "the market" of the S&P 500 (SP500) as of late due to just how much concentration there is in a select number of large-cap tech stocks. If you share similar concerns, one way to stay exposed to large-caps while taking on less overall mega-cap tech risk is through a revenue-oriented focus. One way to do this is through the Invesco S&P 500 Revenue ETF ( RWL ), a fund that operates based on the S&P 500 Revenue-Weighted Index....

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