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

Making its debut on 11/01/2006, smart beta exchange traded fund Invesco S&P 500 Equal Weight Energy ETF (RSPG) provides investors broad exposure to the Energy 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.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexRSPG is managed by Invesco, and this fund has amassed over $509.05 million, which makes it one of the larger ETFs in the Energy ETFs. 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.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.Operating expenses on an annual basis are 0.40% for RSPG, making it one of the cheaper products in the space.It's 12-month trailing dividend yield comes in at 1.78%.Sector Exposure and Top HoldingsMost 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.RSPG's heaviest allocation is in the Energy sector, which is about 100% of the portfolio.Taking into account individual holdings, Texas Pacific Land Corp (TPL) accounts for about 5.22% of the fund's total assets, followed by Eqt Corp (EQT) and Targa Resources Corp (TRGP).Its top 10 holdings account for approximately 48.08% of RSPG's total assets under management.Performance and RiskSo far this year, RSPG has added about 5.63%, and was up about 3.56% in the last one year (as of 03/19/2025). During this past 52-week period, the fund has traded between $73.16 and $86.09.RSPG has a beta of 1.38 and standard deviation of 19.38% for the trailing three-year period. With about 24 holdings, it has more concentrated exposure than peers.AlternativesInvesco S&P 500 Equal Weight Energy ETF is a reasonable option for investors seeking to outperform the Energy ETFs segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.82 billion in assets, Energy Select Sector SPDR ETF has $32.95 billion. VDE has an expense ratio of 0.09% and XLE charges 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 Energy ETFs.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P 500 Equal Weight Energy ETF (RSPG): ETF Research Reports EQT Corporation (EQT): Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Targa Resources, Inc. (TRGP): Free Stock Analysis Report Vanguard Energy ETF (VDE): ETF Research Reports Texas Pacific Land Corporation (TPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks