If you’re interested in broad exposure to the Financials – Broad segment of the equity market, look no further than the Invesco S&P 500 Equal Weight Financials ETF (RSPF), a passively managed exchange traded fund launched on 11/01/2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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. Financials – Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
The fund is sponsored by Invesco. It has amassed assets over $299.84 million, making it one of the average sized ETFs attempting to match the performance of the Financials – Broad segment of the equity market. RSPF seeks to match the performance of the S&P 500 EQUAL WEIGHT FINANCIALS INDEX before fees and expenses.
The S&P 500 Equal Weight Financials Index equally weights stocks in the financial 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 on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.85%.
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 Financials sector–about 100% of the portfolio.
Looking at individual holdings, Synchrony Financial (SYF) accounts for about 1.74% of total assets, followed by Wells Fargo & Co (WFC) and Raymond James Financial Inc (RJF).
The top 10 holdings account for about 16.40% of total assets under management.
So far this year, RSPF has lost about -2.51%, and is up about 21.30% in the last one year (as of 01/13/2025). During this past 52-week period, the fund has traded between $57.66 and $78.05.
The ETF has a beta of 1.07 and standard deviation of 14.51% for the trailing three-year period. With about 74 holdings, it effectively diversifies company-specific risk.
