Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Technology ETF (
RYT Quick Quote RYT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient 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 8, placing it in top 50%.
The fund is sponsored by Invesco. It has amassed assets over $2.08 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. RYT seeks to match the performance of the S&P 500 Equal Weight Information Technology 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.
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
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 0.62%.
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 in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Intuit Inc (
INTU Quick Quote INTU - Free Report) accounts for about 1.44% of total assets, followed by Epam Systems Inc ( EPAM Quick Quote EPAM - Free Report) and Servicenow Inc ( NOW Quick Quote NOW - Free Report) .
The top 10 holdings account for about 13.97% of total assets under management.
Performance and Risk
So far this year, RYT has lost about -19.90%, and is down about -10.45% in the last one year (as of 07/22/2022). During this past 52-week period, the fund has traded between $229.64 and $327.55.
The ETF has a beta of 1.14 and standard deviation of 29.29% for the trailing three-year period, making it a medium risk choice in the space. With about 77 holdings, it effectively diversifies company-specific risk.
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, RYT is an outstanding 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 Quick Quote XLK - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF ( VGT Quick Quote VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $41.32 billion in assets, Vanguard Information Technology ETF has $43.97 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%. Bottom Line
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Zacks ETF Center.