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Should You Invest in the Invesco S&P 500 Equal Weight Technology ETF (RSPT)?
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Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Technology ETF (RSPT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $3.22 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. RSPT seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH INDEX before fees and expenses.
The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology sector of the S&P 500 Index.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.51%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Tyler Technologies Inc (TYL - Free Report) accounts for about 1.95% of total assets, followed by Epam Systems Inc (EPAM - Free Report) and Fair Isaac Corp (FICO - Free Report) .
The top 10 holdings account for about 17.96% of total assets under management.
Performance and Risk
The ETF has added about 6.78% so far this year and was up about 17.15% in the last one year (as of 09/09/2024). In that past 52-week period, it has traded between $26.28 and $38.50.
The ETF has a beta of 1.16 and standard deviation of 24.02% for the trailing three-year period. With about 68 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RSPT is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $64.13 billion in assets, Vanguard Information Technology ETF has $70.17 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
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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Should You Invest in the Invesco S&P 500 Equal Weight Technology ETF (RSPT)?
Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Technology ETF (RSPT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $3.22 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. RSPT seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH INDEX before fees and expenses.
The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology sector of the S&P 500 Index.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.51%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Tyler Technologies Inc (TYL - Free Report) accounts for about 1.95% of total assets, followed by Epam Systems Inc (EPAM - Free Report) and Fair Isaac Corp (FICO - Free Report) .
The top 10 holdings account for about 17.96% of total assets under management.
Performance and Risk
The ETF has added about 6.78% so far this year and was up about 17.15% in the last one year (as of 09/09/2024). In that past 52-week period, it has traded between $26.28 and $38.50.
The ETF has a beta of 1.16 and standard deviation of 24.02% for the trailing three-year period. With about 68 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RSPT is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $64.13 billion in assets, Vanguard Information Technology ETF has $70.17 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
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.