Today let's play around with the Alps Equal Sector Weight Fund (EQL) that we looked at the other day. I wanted to try to build something out was simple with a little robustness in the face of market adversity. I built out the following, one with market cap weighting and the other with EQL. Everything except SHRIX and EQL are in my ownership universe.
They're identical except for VOO and EQL.
It probably only makes sense to consider EQL if you are concerned about technology and communications being ground zero for some sort of really big decline. EQL has lagged for having less in tech and communications so I would expect EQL to outperform if tech does something hideous in relation to the rest of the market. Both versions have much lower volatility and held up quite a bit better in all the drawdowns except for the 2020 Pandemic Crash.
As is the case with most of these exercises we do, not having any bonds with duration is a big driver of the results with BLNDX and BTAL chipping in too.
Short post, we had a very small wildfire today that took some time.
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