US equal-weighted funds shine as investors look beyond Big Tech

Equal-weighted exchange-traded funds (ETFs) have attracted record investments in recent months as signs of an improving U.S. economy and towering valuations of megacaps push investors to look for bargains in traditional economy-linked sectors.

An equal-weighted version of an index assigns uniform weight to each constituent regardless of its size, unlike market capitalization-based indexes where bigger companies tend to have an outsized influence.