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

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A smart beta exchange traded fund, the Invesco S&P 500 Equal Weight Utilities ETF (RSPU - Free Report) debuted on 11/01/2006, and offers broad exposure to the Utilities/Infrastructure ETFs category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

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.

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

The fund is managed by Invesco. RSPU has been able to amass assets over $505.86 million, making it one of the average sized ETFs in the Utilities/Infrastructure ETFs. This particular fund seeks to match the performance of the S&P 500 EQUAL WEIGHT UTILITIES PLUS INDX before fees and expenses.

The S&P 500 Equal Weight Utilities Plus Index equally weights the common stocks of all companies included in the S&P 500 Index that are classified as members of the utilities sector.

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 this ETF, which makes it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 2.34%.

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.

RSPU's heaviest allocation is in the Utilities sector, which is about 100% of the portfolio.

Taking into account individual holdings, Vistra Corp (VST) accounts for about 3.61% of the fund's total assets, followed by Aes Corp/the (AES) and Edison International (EIX).

Its top 10 holdings account for approximately 33.65% of RSPU's total assets under management.

Performance and Risk

The ETF has added about 21.69% and is up roughly 19.78% so far this year and in the past one year (as of 10/14/2025), respectively. RSPU has traded between $64.45 and $78.89 during this last 52-week period.

RSPU has a beta of 0.61 and standard deviation of 16.45% for the trailing three-year period. With about 32 holdings, it has more concentrated exposure than peers .

Alternatives

Invesco S&P 500 Equal Weight Utilities ETF is not a suitable option for investors seeking to outperform the Utilities/Infrastructure ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.

Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $8.06 billion in assets, Utilities Select Sector SPDR ETF has $22.03 billion. VPU has an expense ratio of 0.09% and XLU changes 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 Utilities/Infrastructure 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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