Is iShares MSCI USA Equal Weighted ETF (EUSA) a Strong ETF Right Now?

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

Because the fund has amassed over $1.94 billion, this makes it one of the larger ETFs in the Style Box - All Cap Blend. EUSA is managed by Blackrock. Before fees and expenses, EUSA seeks to match the performance of the MSCI USA Equal Weighted Index.

The MSCI USA Equal Weighted Index represents the MSCI USA Index, measures the performance of equity securities in the top 85% by market capitalization of equity securities listed on stock exchanges in the United States.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Annual operating expenses for EUSA are 0.09%, which makes it one of the least expensive products in the space.

It's 12-month trailing dividend yield comes in at 1.40%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Representing 17% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Financials round out the top three.

When you look at individual holdings, Dell Technologies Inc Class C (DELL) accounts for about 0.33% of the fund's total assets, followed by Astera Labs Inc (ALAB) and Okta Inc Class A (OKTA).

Its top 10 holdings account for approximately 2.81% of EUSA's total assets under management.

Performance and Risk

So far this year, EUSA return is roughly 15.2%, and is up roughly 18.52% in the last one year (as of 08/20/2026). During this past 52-week period, the fund has traded between $98.57 and $119.67.

The ETF has a beta of 0.96 and standard deviation of 14.09% for the trailing three-year period, making it a medium risk choice in the space. With about 533 holdings, it effectively diversifies company-specific risk .

Alternatives

iShares MSCI USA Equal Weighted ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.

iShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Morningstar Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. iShares Core S&P Total U.S. Stock Market ETF has $97.43 billion in assets, Vanguard Morningstar Total Stock Market ETF has $688.72 billion. ITOT has an expense ratio of 0.03% and VTI changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit

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This article originally published on Zacks Investment Research (zacks.com).

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