EQL: A Risk-Conscious Investment Across All S&P Sectors, Not Just Tech

• Last month, the ALPS Equal Sector Weight ETF (EQL) kept pace with the S&P 500 Index as sector leadership showed signs of a rotation. With earnings growth expected to broaden beyond the mega-cap cohort and Information Technology accounting for approximately 34.4% of the S&P 500 at year-end, sector concentration remains a key risk embedded in many core equity allocations heading into 2026.

• EQL’s diversified sector methodology—allocating equal weights to each of the eleven Select Sector SPDR ETFs—creates a much more balanced sector profile than the cap-weighted S&P 500. EQL’s structure meaningfully increases exposure to smaller benchmark sectors (for example, at year-end, EQL’s exposure to Materials was 9.10%, substantially higher than the S&P 500's 1.83% weighting) while reducing reliance on mega-cap-heavy Information Technology. In December, leadership broadened beyond Technology, with Financials, Materials and Industrials leading the S&P 500—highlighting how equal-sector exposure can help investors participate as market breadth improves.

“The growth rates are going to converge between technology and everything else next year and the valuation gap is so wide, it absolutely is justified to see repositioning.”

– Mark Hackett, Chief Market Strategist at Nationwide (Reuters, December 30, 2025)

• Even after the rally of the last several years, index-level concentration remains elevated for broad-based US equity investors. At year-end, Information Technology represented ~34% of the S&P 500—roughly 2.6x the next-largest sector—while four sectors each carried weights below 3% in the Index. Importantly, equal-weighted sector exposure can help mitigate single-sector risk and position portfolios to participate more broadly across the US economy, especially if earnings growth expands beyond the mega-cap cohort and a lower-rate backdrop supports more cyclical and under-allocated sectors.

December Sector Leaders in EQL

Financials

• The State Street Financial Select Sector SPDR ETF (XLF, 9.10% weight*) returned 3.05% in December, supported by large banks/diversified financials (Berkshire Hathaway and JPMorgan Chase are the two largest holdings at ~11% each) and continued strength in payments (Visa and Mastercard). Financials also benefited from easing rate expectations late in the year, which supported sentiment toward lending activity and financial intermediation, alongside improving M&A conditions.

Communication Services

• The State Street Communication Services Select Sector SPDR ETF (XLC, 9.20% weight*) returned 2.35% in December and remains heavily driven by platform leaders (Meta & Alphabet are ~38.93% of XLC) as ongoing investment in artificial intelligence (AI)-enabled business models and scaled digital advertising continued to support the group. Late in 2025, Meta’s acquisition of AI startup Manus and renewed media and streaming M&A interest underscored AI-driven engagement monetization, advertising resilience and deal activity as potential drivers into 2026.

Materials

• The State Street Materials Select Sector SPDR ETF (XLB, 9.10% weight*) returned 1.97% in December as metals strength supported major holdings, including Newmont and Freeport-McMoRan. Copper prices approached record highs amid supply tightness and structural demand tied to electrification and data-center buildout, while gold reached record levels as investors sought hedges and priced further policy easing. With Materials representing less than 2% of the cap-weighted S&P 500 at year-end, EQL’s equal-sector approach provides meaningful exposure to a potential multi-year infrastructure and energy-transition investment cycle.

The ALPS Equal Sector Weight ETF (EQL) provides diversified exposure (~9% weight) to all S&P 500 sectors, creating a more balanced profile than the cap-weighted S&P 500. December’s rotation highlighted how this structure can help capture leadership shifts while reducing single-sector concentration risk. Looking into 2026, potential policy easing and ongoing AI- and infrastructure-related capital spending could support a broader set of beneficiaries beyond mega-cap Technology—an environment in which EQL’s balanced, equal sector exposure is designed to participate.

Source: Bloomberg L.P. and SS&C ALPS Advisors, as of 12/31/2025

Performance data quoted represents past performance. Past performance is no guarantee of future results so that shares, when redeemed, may be worth more or less than their original cost. The investment return and principal value will fluctuate. Current performance may be higher or lower than the performance quoted. For current month-end performance call 1-866-759-5679 or visit www.alpsfunds.com. Performance includes reinvested distributions and capital gains.

Market Price is based on the midpoint of the bid/ask spread at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times.

Fund inception date: 07/06/2009

Total Operating Expenses: 0.45%; What You Pay: 0.27% (reflects the Adviser’s decision to contractually limit expenses through 03/31/2026, please see the prospectus for additional information).

* Weight in EQL as of 12/31/2025

Holdings

As of 12/31/2025, subject to change

Important Disclosures & Definitions

An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, call 1-866-759-5679 or visit www.alpsfunds.com. Read the prospectus carefully before investing.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemable.

Performance data quoted represents past performance. Past performance is no guarantee of future results; current performance may be higher or lower than performance quoted.

All investments are subject to risks, including the loss of money and the possible loss of the entire principal amount invested. Additional information regarding the risks of this investment is available in the prospectus.

Diversification does not eliminate the risk of experiencing investment losses.

The Fund’s investment performance, because it is a fund of funds, depends on the investment performance of the Underlying Sector ETFs in which it invests.

An investment in the Fund is subject to the risks associated with the Underlying Sector ETFs that comprise the Underlying Index. The Fund will indirectly pay a proportional share of the asset-based fees of the Underlying Sector ETFs in which it invests.

The Fund employs a “passive management” - or indexing - investment approach and seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Unlike many investment companies, the Fund is not “actively” managed. Therefore, it would not necessarily sell or buy a security unless that security is removed from or added to the underlying index, respectively.

Mergers and Acquisitions (M&A): the area of corporate finances, management and strategy dealing with purchasing and/or joining with other companies.

NYSE Equal Sector Weight Index: consists of a strategy that holds all active Select Sector® SPDR® ETFs in an equal-weighted portfolio.

S&P 500 Index: widely regarded as the best single gauge of large-cap US equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization.

S&P 500 Information Technology Index: comprises those companies included in the S&P 500 that are classified as members of the GICS information technology sector.

One may not invest directly in an index.

ALPS Advisors, Inc., registered investment adviser with the SEC, is the investment adviser to the Fund. ALPS Advisors, Inc. is affiliated with ALPS Portfolio Solutions Distributor, Inc.

ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Fund.

Not FDIC Insured • No Bank Guarantee • May Lose Value

EQL000425  04/30/2026