Designed to provide broad exposure to the Consumer Staples - Broad segment of the equity market, the Invesco S&P 500 Equal Weight Consumer Staples ETF (
RHS Quick Quote RHS - Free Report) is 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%.
The fund is sponsored by Invesco. It has amassed assets over $647.34 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.
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 2.42%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, 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, Monster Beverage Corp (
MNST Quick Quote MNST - Free Report) accounts for about 3.19% of total assets, followed by Estee Lauder Cos Inc/the ( EL Quick Quote EL - Free Report) and Lamb Weston Holdings Inc ( LW Quick Quote LW - Free Report) .
The top 10 holdings account for about 31.30% of total assets under management.
Performance and Risk
The ETF has lost about -0.72% so far this year and is up roughly 5.64% in the last one year (as of 09/05/2022). In that past 52-week period, it has traded between $153.68 and $180.71.
The ETF has a beta of 0.57 and standard deviation of 19.06% for the trailing three-year period, making it a medium risk choice in the space. With about 34 holdings, it has more concentrated exposure than peers.
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 a great choice for investors seeking exposure to the Consumer Staples ETFs segment of the market. Instead, there are better ETFs in the space to consider.
Vanguard Consumer Staples ETF (
VDC Quick Quote VDC - Free Report) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF ( XLP Quick Quote XLP - Free Report) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $6.67 billion in assets, Consumer Staples Select Sector SPDR ETF has $15.65 billion. VDC has an expense ratio of 0.10% and XLP charges 0.10%. Bottom Line
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