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Should Invesco S&P 500 Equal Weight ETF (RSP) Be on Your Investing Radar?
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Invesco S&P 500 Equal Weight ETF (RSP - Free Report) , a passively managed exchange traded fund launched on 04/24/2003.
The fund is sponsored by Invesco. It has amassed assets over $53.79 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.60%.
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.
This ETF has heaviest allocation to the Industrials sector--about 16% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Micron Technology Inc (MU - Free Report) accounts for about 0.25% of total assets, followed by Freeport-Mcmoran Inc (FCX - Free Report) and Valero Energy Corp (VLO - Free Report) .
The top 10 holdings account for about 2.33% of total assets under management.
Performance and Risk
RSP seeks to match the performance of the S&P 500 Equal Weight Index before fees and expenses. The S&P 500 Equal Weight Index equally weights the stocks in the S&P 500 Index.
The ETF has added roughly 2.24% so far this year and it's up approximately 12.56% in the last one year (as of 05/02/2024). In the past 52-week period, it has traded between $133.66 and $169.37.
The ETF has a beta of 1.06 and standard deviation of 17% for the trailing three-year period. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSP is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $433.87 billion in assets, SPDR S&P 500 ETF has $497.21 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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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Should Invesco S&P 500 Equal Weight ETF (RSP) Be on Your Investing Radar?
Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Invesco S&P 500 Equal Weight ETF (RSP - Free Report) , a passively managed exchange traded fund launched on 04/24/2003.
The fund is sponsored by Invesco. It has amassed assets over $53.79 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.60%.
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.
This ETF has heaviest allocation to the Industrials sector--about 16% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Micron Technology Inc (MU - Free Report) accounts for about 0.25% of total assets, followed by Freeport-Mcmoran Inc (FCX - Free Report) and Valero Energy Corp (VLO - Free Report) .
The top 10 holdings account for about 2.33% of total assets under management.
Performance and Risk
RSP seeks to match the performance of the S&P 500 Equal Weight Index before fees and expenses. The S&P 500 Equal Weight Index equally weights the stocks in the S&P 500 Index.
The ETF has added roughly 2.24% so far this year and it's up approximately 12.56% in the last one year (as of 05/02/2024). In the past 52-week period, it has traded between $133.66 and $169.37.
The ETF has a beta of 1.06 and standard deviation of 17% for the trailing three-year period. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSP is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $433.87 billion in assets, SPDR S&P 500 ETF has $497.21 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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.