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

Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN) is a smart beta exchange traded fund offering broad exposure to the Industrials 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 offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.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.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexManaged by Invesco, RSPN has amassed assets over $694.01 million, making it one of the average sized ETFs in the Industrials ETFs. RSPN, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT INDUSTRIALS INDEX .The S&P 500 Equal Weight Industrials Index equally weights stocks in the industrials sector of the S&P 500 Index.Cost & Other ExpensesWhen considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.Operating expenses on an annual basis are 0.40% for this ETF, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 0.86%.Sector Exposure and Top HoldingsETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.RSPN's heaviest allocation is in the Industrials sector, which is about 100% of the portfolio.Looking at individual holdings, United Airlines Holdings Inc (UAL) accounts for about 1.96% of total assets, followed by Ge Vernova Inc (GEV) and Delta Air Lines Inc (DAL).Its top 10 holdings account for approximately 15.57% of RSPN's total assets under management.Performance and RiskSo far this year, RSPN has added about 27.30%, and is up about 37.89% in the last one year (as of 11/25/2024). During this past 52-week period, the fund has traded between $39.66 and $55.The fund has a beta of 1.12 and standard deviation of 18.36% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 Equal Weight Industrials ETF is an excellent option for investors seeking to outperform the Industrials ETFs segment of the market. There are other ETFs in the space which investors could consider as well.Vanguard Industrials ETF (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.97 billion in assets, Industrial Select Sector SPDR ETF has $21.85 billion. VIS has an expense ratio of 0.10% and XLI 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 Industrials 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 Industrials ETF (RSPN): ETF Research Reports Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report Vanguard Industrials ETF (VIS): ETF Research Reports Industrial Select Sector SPDR ETF (XLI): ETF Research Reports GE Vernova Inc. (GEV): 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