Ought to You Spend money on the Invesco S&P 500 Equal Weight Power ETF (RSPG)?

The Invesco S&P 500 Equal Weight Power ETF (RSPG) was launched on 11/01/2006, and is a passively managed trade traded fund designed to supply broad publicity to the Power – Broad section of the fairness market.

Passively managed ETFs have gotten more and more well-liked with institutional in addition to retail traders because of their low price, transparency, flexibility and tax effectivity. They’re glorious automobiles for long run traders.

Sector ETFs additionally present traders entry to a broad group of firms particularly sectors that supply low danger and diversified publicity. Power – Broad is without doubt one of the 16 broad Zacks sectors throughout the Zacks Business classification. It’s at present ranked 15, inserting it in backside 6%.

Index Particulars

The fund is sponsored by Invesco. It has amassed property over $509.72 million, making it one of many bigger ETFs making an attempt to match the efficiency of the Power – Broad section of the fairness market. RSPG seeks to match the efficiency of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX earlier than charges and bills.

The S&P 500 Equal Weight Power Plus Index equally weights shares within the power sector of the S&P 500 Index.

Prices

Since cheaper funds have a tendency to provide higher outcomes than dearer funds, assuming all different elements stay equal, it’s important for traders to concentrate to an ETF’s expense ratio.

Annual working bills for this ETF are 0.40%, making it one of many cheaper merchandise within the area.

It has a 12-month trailing dividend yield of two.72%.

Sector Publicity and Prime Holdings

You will need to delve into an ETF’s holdings earlier than investing regardless of the numerous upsides to those sorts of funds like diversified publicity, which minimizes single inventory danger. And, most ETFs are very clear merchandise that disclose their holdings each day.

This ETF has heaviest allocation within the Power sector–about 100% of the portfolio.

Taking a look at particular person holdings, Baker Hughes Co (BKR) accounts for about 5.16% of complete property, adopted by Targa Sources Corp (TRGP) and Exxon Mobil Corp (XOM).

The highest 10 holdings account for about 48.19% of complete property underneath administration.

Efficiency and Threat

12 months-to-date, the Invesco S&P 500 Equal Weight Power ETF return is roughly 1.49% to this point, and is down about -2.81% over the past 12 months (as of 09/12/2024). RSPG has traded between $69.70 and $86.08 on this previous 52-week interval.

The ETF has a beta of 1.41 and customary deviation of 18.49% for the trailing three-year interval. With about 23 holdings, it has extra concentrated publicity than friends.

Alternate options

Invesco S&P 500 Equal Weight Power ETF holds a Zacks ETF Rank of two (Purchase), which is predicated on anticipated asset class return, expense ratio, and momentum, amongst different elements. Due to this, RSPG is a good choice for traders in search of publicity to the Power ETFs section of the market. There are different further ETFs within the area that traders may take into account as properly.

Vanguard Power ETF (VDE) tracks MSCI US Investable Market Power 25/50 Index and the Power Choose Sector SPDR ETF (XLE) tracks Power Choose Sector Index. Vanguard Power ETF has $7.69 billion in property, Power Choose Sector SPDR ETF has $33.99 billion. VDE has an expense ratio of 0.10% and XLE prices 0.09%.

Backside Line

To study extra about this product and different ETFs, display for merchandise that match your funding goals and skim articles on newest developments within the ETF investing universe, please go to Zacks ETF Center.