Alps releases equal sector weight ETF

Alps has released the Equal Sector ETF on NSYE Arca, providing equally weighted exposure to the nine Select Sector SPDR ETFs. The Alps fund is an ETF of ETFs, as it replicates the performance of the Banc of America Securities – Merrill Lynch Equal Sector Weight index by owning each of the nine Select Sector SPDR ETFs in equal weights. In order to ensure equal weighting, the nine ETFs are rebalanced on a quarterly basis. Alps claims that the ETF is the first to use an equal-weight index methodology at sector level, instead of applying equal weighting to individual securities within the i...