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Should You Invest in the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS)?
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Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS - Free Report) , 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 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $549.33 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. RSPS seeks to match the performance of the S&P 500 EQL WEIGHT CONSUMER STAPLES INDX 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 2.78%.
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, Costco Wholesale Corp (COST - Free Report) accounts for about 2.91% of total assets, followed by Walgreens Boots Alliance Inc (WBA - Free Report) and Kraft Heinz Co/the (KHC - Free Report) .
The top 10 holdings account for about 27.97% of total assets under management.
Performance and Risk
The ETF has added roughly 0% and is down about -5.37% so far this year and in the past one year (as of 01/02/2024), respectively. RSPS has traded between $28.40 and $35.34 during this last 52-week period.
The ETF has a beta of 0.63 and standard deviation of 13.55% for the trailing three-year period. With about 39 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, RSPS 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 $15.41 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 (RSPS)?
Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS - Free Report) , 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 10, placing it in bottom 38%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $549.33 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. RSPS seeks to match the performance of the S&P 500 EQL WEIGHT CONSUMER STAPLES INDX 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 2.78%.
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, Costco Wholesale Corp (COST - Free Report) accounts for about 2.91% of total assets, followed by Walgreens Boots Alliance Inc (WBA - Free Report) and Kraft Heinz Co/the (KHC - Free Report) .
The top 10 holdings account for about 27.97% of total assets under management.
Performance and Risk
The ETF has added roughly 0% and is down about -5.37% so far this year and in the past one year (as of 01/02/2024), respectively. RSPS has traded between $28.40 and $35.34 during this last 52-week period.
The ETF has a beta of 0.63 and standard deviation of 13.55% for the trailing three-year period. With about 39 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, RSPS 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 $15.41 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.