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Should You Invest in the Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS)?
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Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Consumer Staples ETF , a passively managed exchange traded fund launched on 11/01/2006.
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.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $517.57 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. RHS seeks to match the performance of the S&P 500 Equal Weight Consumer Staples Index before fees and expenses.
The S&P 500 Equal Weight Consumer Staples Index equally weights stocks in the consumer staples sector of the S&P 500 Index.
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 0.40%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.09%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 100% of the portfolio.
Looking at individual holdings, Archer-Daniels-Midland Co (ADM - Free Report) accounts for about 3.41% of total assets, followed by Tyson Foods Inc (TSN - Free Report) and General Mills Inc (GIS - Free Report) .
The top 10 holdings account for about 33.08% of total assets under management.
Performance and Risk
So far this year, RHS has lost about -0.82%, and it's up approximately 16.16% in the last one year (as of 03/03/2022). During this past 52-week period, the fund has traded between $147.32 and $173.78.
The ETF has a beta of 0.68 and standard deviation of 18.32% for the trailing three-year period, making it a medium risk choice in the space. With about 33 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco S&P 500 Equal Weight Consumer Staples ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. RHS, then, is not the best option for investors seeking exposure to the Consumer Staples ETFs segment of the market. However, there are better ETFs in the space to consider.
Vanguard Consumer Staples ETF (VDC - Free Report) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP - Free Report) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $6.70 billion in assets, Consumer Staples Select Sector SPDR ETF has $15.36 billion. VDC has an expense ratio of 0.10% and XLP 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 Consumer Staples ETF (RHS)?
Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Consumer Staples ETF , a passively managed exchange traded fund launched on 11/01/2006.
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.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $517.57 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. RHS seeks to match the performance of the S&P 500 Equal Weight Consumer Staples Index before fees and expenses.
The S&P 500 Equal Weight Consumer Staples Index equally weights stocks in the consumer staples sector of the S&P 500 Index.
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 0.40%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.09%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Staples sector--about 100% of the portfolio.
Looking at individual holdings, Archer-Daniels-Midland Co (ADM - Free Report) accounts for about 3.41% of total assets, followed by Tyson Foods Inc (TSN - Free Report) and General Mills Inc (GIS - Free Report) .
The top 10 holdings account for about 33.08% of total assets under management.
Performance and Risk
So far this year, RHS has lost about -0.82%, and it's up approximately 16.16% in the last one year (as of 03/03/2022). During this past 52-week period, the fund has traded between $147.32 and $173.78.
The ETF has a beta of 0.68 and standard deviation of 18.32% for the trailing three-year period, making it a medium risk choice in the space. With about 33 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco S&P 500 Equal Weight Consumer Staples ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. RHS, then, is not the best option for investors seeking exposure to the Consumer Staples ETFs segment of the market. However, there are better ETFs in the space to consider.
Vanguard Consumer Staples ETF (VDC - Free Report) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP - Free Report) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $6.70 billion in assets, Consumer Staples Select Sector SPDR ETF has $15.36 billion. VDC has an expense ratio of 0.10% and XLP 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.