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Is Invesco S&P 500 Equal Weight Technology ETF (RSPT) a Strong ETF Right Now?

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Making its debut on 11/01/2006, smart beta exchange traded fund Invesco S&P 500 Equal Weight Technology ETF (RSPT - Free Report) provides investors broad exposure to the Technology 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.

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.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

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

The fund is managed by Invesco, and has been able to amass over $3.69 billion, which makes it one of the largest ETFs in the Technology ETFs. Before fees and expenses, this particular fund 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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

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 0.21%.

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 Information Technology sector - about 100% of the portfolio.

When you look at individual holdings, Palantir Technologies Inc (PLTR) accounts for about 2.1% of the fund's total assets, followed by Amphenol Corp (APH) and Seagate Technology Holdings Plc (STX).

RSPT's top 10 holdings account for about 17.75% of its total assets under management.

Performance and Risk

The ETF has gained about 6.99% and is up about 10.42% so far this year and in the past one year (as of 06/25/2025), respectively. RSPT has traded between $29.52 and $40.28 during this last 52-week period.

RSPT has a beta of 1.21 and standard deviation of 23.90% 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) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $77.63 billion in assets, Vanguard Information Technology ETF has $91.12 billion. XLK has an expense ratio of 0.08% and VGT changes 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 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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