If you’re interested in broad exposure to the Energy – Broad segment of the equity market, look no further than the Invesco S&P 500 Equal Weight Energy ETF (RSPG), a passively managed exchange traded fund launched on 11/01/2006.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Energy – Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
The fund is sponsored by Invesco. It has amassed assets over $548.89 million, making it one of the larger ETFs attempting to match the performance of the Energy – Broad segment of the equity market. RSPG seeks to match the performance of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX before fees and expenses.
The S&P 500 Equal Weight Energy Plus Index equally weights stocks in the energy sector of the S&P 500 Index.
When considering an ETF’s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.27%.
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector–about 100% of the portfolio.
Looking at individual holdings, Eqt Corp (EQT) accounts for about 4.88% of total assets, followed by Coterra Energy Inc (CTRA) and Apa Corp (APA).
The top 10 holdings account for about 47.59% of total assets under management.
The ETF return is roughly 7.01% so far this year and it’s up approximately 15.76% in the last one year (as of 01/14/2025). In that past 52-week period, it has traded between $69.70 and $86.09.
The ETF has a beta of 1.42 and standard deviation of 18.90% for the trailing three-year period. With about 23 holdings, it has more concentrated exposure than peers.
Invesco S&P 500 Equal Weight Energy ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSPG is a sufficient option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
