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Is Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) a Strong ETF Right Now?
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Designed to provide broad exposure to the Consumer Staples ETFs category of the market, the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS - Free Report) is a smart beta exchange traded fund launched on 11/01/2006.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $266.64 million, this makes it one of the average sized ETFs in the Consumer Staples ETFs. RSPS is managed by Invesco. Before fees and expenses, this particular fund seeks to match the performance of the S&P 500 EQL WEIGHT CONSUMER STAPLES INDX.
The S&P 500 Equal Weight Consumer Staples Index equally weights stocks in the consumer staples sector of the S&P 500 Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.
RSPS's 12-month trailing dividend yield is 2.19%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
RSPS's heaviest allocation is in the Consumer Staples sector, which is about 100% of the portfolio.
When you look at individual holdings, Target Corp (TGT - Free Report) accounts for about 2.86% of the fund's total assets, followed by Kellanova (K - Free Report) and Dollar Tree Inc (DLTR - Free Report) .
RSPS's top 10 holdings account for about 27.73% of its total assets under management.
Performance and Risk
The ETF has lost about -2.06% so far this year and is down about -2.56% in the last one year (as of 01/22/2025). In the past 52-week period, it has traded between $29.04 and $32.93.
The fund has a beta of 0.59 and standard deviation of 13.29% 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 is a reasonable option for investors seeking to outperform the Consumer Staples ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
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 $6.91 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.37 billion. VDC has an expense ratio of 0.10% and XLP charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Consumer Staples 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 Consumer Staples ETF (RSPS) a Strong ETF Right Now?
Designed to provide broad exposure to the Consumer Staples ETFs category of the market, the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS - Free Report) is a smart beta exchange traded fund launched on 11/01/2006.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $266.64 million, this makes it one of the average sized ETFs in the Consumer Staples ETFs. RSPS is managed by Invesco. Before fees and expenses, this particular fund seeks to match the performance of the S&P 500 EQL WEIGHT CONSUMER STAPLES INDX.
The S&P 500 Equal Weight Consumer Staples Index equally weights stocks in the consumer staples sector of the S&P 500 Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.
RSPS's 12-month trailing dividend yield is 2.19%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
RSPS's heaviest allocation is in the Consumer Staples sector, which is about 100% of the portfolio.
When you look at individual holdings, Target Corp (TGT - Free Report) accounts for about 2.86% of the fund's total assets, followed by Kellanova (K - Free Report) and Dollar Tree Inc (DLTR - Free Report) .
RSPS's top 10 holdings account for about 27.73% of its total assets under management.
Performance and Risk
The ETF has lost about -2.06% so far this year and is down about -2.56% in the last one year (as of 01/22/2025). In the past 52-week period, it has traded between $29.04 and $32.93.
The fund has a beta of 0.59 and standard deviation of 13.29% 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 is a reasonable option for investors seeking to outperform the Consumer Staples ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
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 $6.91 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.37 billion. VDC has an expense ratio of 0.10% and XLP charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Consumer Staples 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.