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Is Invesco S&P 500 Equal Weight Industrials ETF (RSPN) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN - Free Report) debuted on 11/01/2006, and offers broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $626.10 million, which makes it one of the average sized ETFs in the Industrials ETFs. RSPN, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT INDUSTRIALS INDEX .
The S&P 500 Equal Weight Industrials Index equally weights stocks in the industrials sector of the S&P 500 Index.
Cost & Other Expenses
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.
It's 12-month trailing dividend yield comes in at 0.94%.
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 Industrials sector - about 100% of the portfolio.
When you look at individual holdings, Ge Vernova Inc (GEV - Free Report) accounts for about 1.66% of the fund's total assets, followed by Quanta Services Inc (PWR - Free Report) and Howmet Aerospace Inc (HWM - Free Report) .
Its top 10 holdings account for approximately 14.95% of RSPN's total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Equal Weight Industrials ETF has added about 4.36% so far, and is up roughly 15.40% over the last 12 months (as of 06/02/2025). RSPN has traded between $43.34 and $55.08 in this past 52-week period.
The ETF has a beta of 1.10 and standard deviation of 18.72% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Industrials ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.43 billion in assets, Industrial Select Sector SPDR ETF has $21.08 billion. VIS has an expense ratio of 0.09% and XLI charges 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials 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 Industrials ETF (RSPN) a Strong ETF Right Now?
A smart beta exchange traded fund, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN - Free Report) debuted on 11/01/2006, and offers broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $626.10 million, which makes it one of the average sized ETFs in the Industrials ETFs. RSPN, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT INDUSTRIALS INDEX .
The S&P 500 Equal Weight Industrials Index equally weights stocks in the industrials sector of the S&P 500 Index.
Cost & Other Expenses
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.40%.
It's 12-month trailing dividend yield comes in at 0.94%.
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 Industrials sector - about 100% of the portfolio.
When you look at individual holdings, Ge Vernova Inc (GEV - Free Report) accounts for about 1.66% of the fund's total assets, followed by Quanta Services Inc (PWR - Free Report) and Howmet Aerospace Inc (HWM - Free Report) .
Its top 10 holdings account for approximately 14.95% of RSPN's total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Equal Weight Industrials ETF has added about 4.36% so far, and is up roughly 15.40% over the last 12 months (as of 06/02/2025). RSPN has traded between $43.34 and $55.08 in this past 52-week period.
The ETF has a beta of 1.10 and standard deviation of 18.72% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Industrials ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.43 billion in assets, Industrial Select Sector SPDR ETF has $21.08 billion. VIS has an expense ratio of 0.09% and XLI charges 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials 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.