Are equal-weight ETFs good protection for extreme stock market concentration?
After struggling to attract assets earlier in the year, equal-weight ETFs have been pulling in hefty flows in recent months as investors worry about excessive stock market concentration.
According to Morningstar’s European ETF Asset Flows Update, three funds tracking the S&P 500 Equal Weight index appeared in the top 10 of the US Large-Cap Blended Equity category for Q3 – the Xtrackers S&P500 Equal Weight ETF (XDEW), the iShares S&P 500 Equal Weight ETF (ESWP) and the XTrackers S&P 500 Equal Weight ESG ETF (XSZP).
They booked net inflows of €2.1bn, €1.4bn and €1.1bn over the quarter respectively.
Inflows have been particularly strong since the market volatility over the summer, with XDEW and ESWP topping the category’s inflow…
