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

A smart beta exchange traded fund, the Invesco S&P 500 Equal Weight Technology ETF (RSPT) debuted on 11/01/2006, and offers broad exposure to the Technology 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.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.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.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexBecause the fund has amassed over $3.59 billion, this makes it one of the larger ETFs in the Technology ETFs. RSPT is managed by Invesco. This particular fund, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH INDEX .The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology sector of the S&P 500 Index.Cost & Other ExpensesInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.The fund has a 12-month trailing dividend yield of 0.44%.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.Representing 100% of the portfolio, the fund has heaviest allocation to the Information Technology sector.Taking into account individual holdings, Jabil Inc (JBL) accounts for about 1.73% of the fund's total assets, followed by Intel Corp (INTC) and Palantir Technologies Inc (PLTR).Its top 10 holdings account for approximately 16.64% of RSPT's total assets under management.Performance and RiskSo far this year, RSPT has added roughly 19.56%, and was up about 23.14% in the last one year (as of 12/16/2024). During this past 52-week period, the fund has traded between $31.13 and $39.55.The ETF has a beta of 1.16 and standard deviation of 24.03% for the trailing three-year period. With about 71 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 Equal Weight Technology ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $74.35 billion in assets, Vanguard Information Technology ETF has $85.91 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology 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 Technology ETF (RSPT): ETF Research Reports Intel Corporation (INTC): Free Stock Analysis Report Jabil, Inc. (JBL): Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Palantir Technologies Inc. (PLTR): 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