The Invesco S&P 500 Equal Weight Energy ETF (
RSPG Quick Quote RSPG - Free Report) was launched on 11/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
The fund is sponsored by Invesco. It has amassed assets over $612.86 million, making it one of the larger ETFs attempting to match the performance of the Energy - Broad segment of the equity market. RSPG seeks to match the performance of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX before fees and expenses.
The S&P 500 Equal Weight Energy Plus Index equally weights stocks in the energy 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 one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 3.04%.
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 Energy sector--about 100% of the portfolio.
Looking at individual holdings, Eqt Corp (
EQT Quick Quote EQT - Free Report) accounts for about 4.69% of total assets, followed by Oneok Inc ( OKE Quick Quote OKE - Free Report) and Williams Cos Inc/the ( WMB Quick Quote WMB - Free Report) .
The top 10 holdings account for about 45.15% of total assets under management.
Performance and Risk
The ETF has gained about 11.02% so far this year and was up about 0% in the last one year (as of 10/30/2023). In that past 52-week period, it has traded between $64.94 and $80.13.
The ETF has a beta of 1.59. With about 24 holdings, it has more concentrated exposure than peers.
Invesco S&P 500 Equal Weight Energy 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, RSPG is a good option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Energy ETF (
VDE Quick Quote VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF ( XLE Quick Quote XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $8.13 billion in assets, Energy Select Sector SPDR ETF has $38.19 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%. Bottom Line
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