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Should You Invest in the Invesco S&P 500 Equal Weight Technology ETF (RSPT)?
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Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Technology ETF (RSPT - Free Report) , a passively managed exchange traded fund launched on 11/01/2006.
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%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $2.99 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. RSPT seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH 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.
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 one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.64%.
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 Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Intuit Inc (INTU - Free Report) accounts for about 1.82% of total assets, followed by Cdw Corp/de (CDW - Free Report) and Nvidia Corp (NVDA - Free Report) .
The top 10 holdings account for about 17.44% of total assets under management.
Performance and Risk
The ETF has added about 19.56% so far this year and is up roughly 11.42% in the last one year (as of 08/29/2023). In that past 52-week period, it has traded between $22.01 and $30.45.
The ETF has a beta of 1.17 and standard deviation of 24.27% for the trailing three-year period. With about 66 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RSPT 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 - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $49.33 billion in assets, Vanguard Information Technology ETF has $51.35 billion. XLK has an expense ratio of 0.10% and VGT 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 Technology ETF (RSPT)?
Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Technology ETF (RSPT - Free Report) , a passively managed exchange traded fund launched on 11/01/2006.
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%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $2.99 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. RSPT seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH 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.
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 one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.64%.
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 Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Intuit Inc (INTU - Free Report) accounts for about 1.82% of total assets, followed by Cdw Corp/de (CDW - Free Report) and Nvidia Corp (NVDA - Free Report) .
The top 10 holdings account for about 17.44% of total assets under management.
Performance and Risk
The ETF has added about 19.56% so far this year and is up roughly 11.42% in the last one year (as of 08/29/2023). In that past 52-week period, it has traded between $22.01 and $30.45.
The ETF has a beta of 1.17 and standard deviation of 24.27% for the trailing three-year period. With about 66 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Technology ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RSPT 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 - Free Report) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT - Free Report) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $49.33 billion in assets, Vanguard Information Technology ETF has $51.35 billion. XLK has an expense ratio of 0.10% and VGT 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.