Invesco is listing an ETF that tracks an equally weighted version of the rebooted communications sector. The Invesco S&P 500 Equal Weight Communication Services ETF (EWCO) is straightforward so far as smart beta ETFs go. The equal weighting functions as a deliberate mid-cap tilt.

Whilst most investors assume equal weighting is a mid-cap tilt, this is explicitly spelled out the prospectus which says if the index drops down to fewer than 22 companies, "the [index] will be supplemented with the largest communication services companies in the S&P MidCap 400 Index." This would presumably water down the sector exposure.


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