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Is Invesco S&P 500 Equal Weight Energy ETF (RSPG) a Strong ETF Right Now?
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Designed to provide broad exposure to the Energy ETFs category of the market, the Invesco S&P 500 Equal Weight Energy ETF (RSPG - Free Report) is a smart beta exchange traded fund launched on 11/01/2006.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Invesco, RSPG has amassed assets over $565.43 million, making it one of the larger ETFs in the Energy ETFs. RSPG, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX .
The S&P 500 Equal Weight Energy Plus Index equally weights stocks in the energy sector of the S&P 500 Index.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.40%.
It has a 12-month trailing dividend yield of 2.84%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 100% of the portfolio, the fund has heaviest allocation to the Energy sector.
Taking into account individual holdings, Eqt Corp (EQT - Free Report) accounts for about 4.69% of the fund's total assets, followed by Oneok Inc (OKE - Free Report) and Williams Cos Inc/the (WMB - Free Report) .
The top 10 holdings account for about 45.15% of total assets under management.
Performance and Risk
The ETF return is roughly 10.35% and is up about 0% so far this year and in the past one year (as of 01/01/2024), respectively. RSPG has traded between $64.94 and $80.13 during this last 52-week period.
The fund has a beta of 1.51. With about 24 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco S&P 500 Equal Weight Energy ETF is a reasonable option for investors seeking to outperform the Energy ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.90 billion in assets, Energy Select Sector SPDR ETF has $36.23 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Energy ETFs.
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 Zacks ETF Center.
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Is Invesco S&P 500 Equal Weight Energy ETF (RSPG) a Strong ETF Right Now?
Designed to provide broad exposure to the Energy ETFs category of the market, the Invesco S&P 500 Equal Weight Energy ETF (RSPG - Free Report) is a smart beta exchange traded fund launched on 11/01/2006.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Invesco, RSPG has amassed assets over $565.43 million, making it one of the larger ETFs in the Energy ETFs. RSPG, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX .
The S&P 500 Equal Weight Energy Plus Index equally weights stocks in the energy sector of the S&P 500 Index.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.40%.
It has a 12-month trailing dividend yield of 2.84%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 100% of the portfolio, the fund has heaviest allocation to the Energy sector.
Taking into account individual holdings, Eqt Corp (EQT - Free Report) accounts for about 4.69% of the fund's total assets, followed by Oneok Inc (OKE - Free Report) and Williams Cos Inc/the (WMB - Free Report) .
The top 10 holdings account for about 45.15% of total assets under management.
Performance and Risk
The ETF return is roughly 10.35% and is up about 0% so far this year and in the past one year (as of 01/01/2024), respectively. RSPG has traded between $64.94 and $80.13 during this last 52-week period.
The fund has a beta of 1.51. With about 24 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco S&P 500 Equal Weight Energy ETF is a reasonable option for investors seeking to outperform the Energy ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.90 billion in assets, Energy Select Sector SPDR ETF has $36.23 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Energy ETFs.
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 Zacks ETF Center.