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

The Invesco S&P 500 Equal Weight Utilities ETF (RSPU) made its debut on 11/01/2006, and is a smart beta exchange traded fund that provides broad exposure to the Utilities/Infrastructure ETFs category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.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 $381.17 million, this makes it one of the average sized ETFs in the Utilities/Infrastructure ETFs. RSPU is managed by Invesco. Before fees and expenses, RSPU seeks to match the performance of the SP 500 EQUAL WEIGHT TELECM-UTILITY INDEX.The S&P 500 Equal Weight Telecommunication Services & Utilities Index equally weights stocks found in the utilities and telecommunication services sectors of the S&P 500 Index.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.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 2.31%.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.This ETF has heaviest allocation in the Utilities sector - about 100% of the portfolio.Looking at individual holdings, Vistra Corp (VST) accounts for about 4.49% of total assets, followed by Constellation Energy Corp (CEG) and Entergy Corp (ETR).RSPU's top 10 holdings account for about 35.6% of its total assets under management.Performance and RiskThe ETF has added about 30.37% so far this year and was up about 30.82% in the last one year (as of 12/03/2024). In the past 52-week period, it has traded between $51.40 and $71.48.The ETF has a beta of 0.63 and standard deviation of 17.83% for the trailing three-year period. With about 33 holdings, it has more concentrated exposure than peers.AlternativesInvesco S&P 500 Equal Weight Utilities ETF is a reasonable option for investors seeking to outperform the Utilities/Infrastructure ETFs segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $6.79 billion in assets, Utilities Select Sector SPDR ETF has $17.66 billion. VPU has an expense ratio of 0.10% and XLU 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 Utilities/Infrastructure 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 Utilities ETF (RSPU): ETF Research Reports Entergy Corporation (ETR): Free Stock Analysis Report Constellation Energy Corporation (CEG): Free Stock Analysis Report Utilities Select Sector SPDR ETF (XLU): ETF Research Reports Vanguard Utilities ETF (VPU): ETF Research Reports Vistra Corp. (VST): 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