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

Making its debut on 11/01/2006, smart beta exchange traded fund Invesco S&P 500 Equal Weight Financials ETF (RSPF) provides investors broad exposure to the Financials ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.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.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix 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 & IndexBecause the fund has amassed over $320.85 million, this makes it one of the average sized ETFs in the Financials ETFs. RSPF is managed by Invesco. Before fees and expenses, RSPF seeks to match the performance of the S&P 500 EQUAL WEIGHT FINANCIALS INDEX .The S&P 500 Equal Weight Financials Index equally weights stocks in the financial sector of the S&P 500 Index.Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 0.79%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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.Taking into account individual holdings, Globe Life Inc (GL) accounts for about 1.54% of the fund's total assets, followed by Metlife Inc (MET) and Citigroup Inc (C).Its top 10 holdings account for approximately 14.41% of RSPF's total assets under management.Performance and RiskThe ETF has added about 3.83% so far this year and is up about 27.44% in the last one year (as of 02/05/2025). In the past 52-week period, it has traded between $58.78 and $78.05.RSPF has a beta of 1.07 and standard deviation of 14.63% for the trailing three-year period. With about 74 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 Equal Weight Financials ETF is a reasonable option for investors seeking to outperform the Financials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Financials ETF (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. Vanguard Financials ETF has $12.14 billion in assets, Financial Select Sector SPDR ETF has $53.43 billion. VFH has an expense ratio of 0.10% and XLF charges 0.09%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials 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 Financials ETF (RSPF): ETF Research Reports Citigroup Inc. (C): Free Stock Analysis Report MetLife, Inc. (MET): Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Vanguard Financials ETF (VFH): ETF Research Reports Globe Life Inc. (GL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks