Designed to provide broad exposure to the Industrials – Broad segment of the equity market, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN) is a passively managed exchange traded fund launched on 11/01/2006.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials – Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
The fund is sponsored by Invesco. It has amassed assets over $641.77 million, making it one of the average sized ETFs attempting to match the performance of the Industrials – Broad segment of the equity market. RSPN seeks to match the performance of the S&P 500 EQUAL WEIGHT INDUSTRIALS INDEX before fees and expenses.
The S&P 500 Equal Weight Industrials Index equally weights stocks in the industrials sector of the S&P 500 Index.
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.
Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.98%.
It is important to delve into an ETF’s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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.
Looking at individual holdings, United Airlines Holdings Inc (UAL) accounts for about 2.20% of total assets, followed by Axon Enterprise Inc (AXON) and Ge Vernova Inc (GEV).
The top 10 holdings account for about 16.63% of total assets under management.
The ETF has lost about -0.44% so far this year and is up about 18.89% in the last one year (as of 01/13/2025). In that past 52-week period, it has traded between $41.66 and $55.08.
The ETF has a beta of 1.14 and standard deviation of 18.05% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk.
Invesco S&P 500 Equal Weight Industrials ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RSPN is an outstanding option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
