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Should You Invest in the Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS)?
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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 is a passively managed exchange traded fund launched on 11/01/2006.
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 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 7, placing it in top 44%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $698.24 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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, Campbell Soup Co (CPB - Free Report) accounts for about 3.14% of total assets, followed by Lamb Weston Holdings Inc (LW - Free Report) and General Mills Inc (GIS - Free Report) .
The top 10 holdings account for about 30.95% of total assets under management.
Performance and Risk
So far this year, RHS has lost about -4.32%, and was up about 2.87% in the last one year (as of 03/13/2023). During this past 52-week period, the fund has traded between $153.79 and $180.71.
The ETF has a beta of 0.59 and standard deviation of 19.01% 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.
Alternatives
Invesco S&P 500 Equal Weight Consumer Staples ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RHS is a reasonable option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $6.45 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.09 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)?
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 is a passively managed exchange traded fund launched on 11/01/2006.
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 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 7, placing it in top 44%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $698.24 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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, Campbell Soup Co (CPB - Free Report) accounts for about 3.14% of total assets, followed by Lamb Weston Holdings Inc (LW - Free Report) and General Mills Inc (GIS - Free Report) .
The top 10 holdings account for about 30.95% of total assets under management.
Performance and Risk
So far this year, RHS has lost about -4.32%, and was up about 2.87% in the last one year (as of 03/13/2023). During this past 52-week period, the fund has traded between $153.79 and $180.71.
The ETF has a beta of 0.59 and standard deviation of 19.01% 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.
Alternatives
Invesco S&P 500 Equal Weight Consumer Staples ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RHS is a reasonable option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $6.45 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.09 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.