Forget Invesco's S&P 500 ETF and Buy This Instead
The Motley Fool
by newsfeedback@fool.com (Todd Shriber)February 13, 2026
AI-Generated Deep Dive Summary
Forget Invesco's S&P 500 ETF and Consider This Equal-Weight Alternative
The S&P 500 has become increasingly concentrated, with just five stocks making up nearly a quarter of the index as of February 9. This concentration risk means that the performance of a few large companies can disproportionately impact the index, potentially exposing investors to greater volatility. While Invesco's S&P 500 ETF (IVV) is a popular choice for tracking this benchmark, it mirrors these risks due to its market-cap weighting methodology.
Enter the ALPS equal-weight ETF, which offers a compelling alternative. Unlike cap-weighted indexes, equal-weighting ensures that each of the 505 stocks in the S&P 500 has an identical weight, spreading investment exposure more evenly across all components. This structure can mitigate concentration risk and potentially provide a more balanced return profile compared to traditional index funds.
For investors seeking diversification and reduced reliance on a handful of dominant companies, the ALPS equal-weight ETF emerges as a strong contender. By distributing investments equally among all index constituents, it aims to offer a more stable and representative exposure to the broader market. This makes it an attractive option for those looking to align their investment strategy with long-term financial goals while managing risk effectively.
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Originally published on The Motley Fool on 2/13/2026