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Is Invesco S&P 500 Equal Weight Technology ETF (RSPT) a Strong ETF Right Now?
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The Invesco S&P 500 Equal Weight Technology ETF (RSPT - Free Report) made its debut on 11/01/2006, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Invesco, RSPT has amassed assets over $3.47 billion, making it one of the larger ETFs in the Technology ETFs. RSPT, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH INDEX .
The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology sector of the S&P 500 Index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.40% for RSPT, making it one of the cheaper products in the space.
RSPT's 12-month trailing dividend yield is 0.45%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 100% of the portfolio.
Taking into account individual holdings, Hewlett Packard Enterprise Co (HPE - Free Report) accounts for about 1.69% of the fund's total assets, followed by Intel Corp (INTC - Free Report) and Jabil Inc (JBL - Free Report) .
RSPT's top 10 holdings account for about 15.88% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Equal Weight Technology ETF has added roughly 16.68% so far, and it's up approximately 35.56% over the last 12 months (as of 10/16/2024). RSPT has traded between $26.28 and $38.79 in this past 52-week period.
The fund has a beta of 1.16 and standard deviation of 24.06% for the trailing three-year period. With about 71 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Technology ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which 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 $70.80 billion in assets, Vanguard Information Technology ETF has $78.73 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
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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Is Invesco S&P 500 Equal Weight Technology ETF (RSPT) a Strong ETF Right Now?
The Invesco S&P 500 Equal Weight Technology ETF (RSPT - Free Report) made its debut on 11/01/2006, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Invesco, RSPT has amassed assets over $3.47 billion, making it one of the larger ETFs in the Technology ETFs. RSPT, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH INDEX .
The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology sector of the S&P 500 Index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.40% for RSPT, making it one of the cheaper products in the space.
RSPT's 12-month trailing dividend yield is 0.45%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 100% of the portfolio.
Taking into account individual holdings, Hewlett Packard Enterprise Co (HPE - Free Report) accounts for about 1.69% of the fund's total assets, followed by Intel Corp (INTC - Free Report) and Jabil Inc (JBL - Free Report) .
RSPT's top 10 holdings account for about 15.88% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Equal Weight Technology ETF has added roughly 16.68% so far, and it's up approximately 35.56% over the last 12 months (as of 10/16/2024). RSPT has traded between $26.28 and $38.79 in this past 52-week period.
The fund has a beta of 1.16 and standard deviation of 24.06% for the trailing three-year period. With about 71 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Technology ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which 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 $70.80 billion in assets, Vanguard Information Technology ETF has $78.73 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
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.