Should You Invest in the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD)?

Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Discretionary - Broad segment of the equity market.Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $292.89 million, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. RSPD seeks to match the performance of the S&P 500 EQL WEIGHT CONS DISCRETIONARY ID before fees and expenses.The S&P 500 Equal Weight Consumer Discretionary Index equally weights stocks in the consumer discretionary sector of the S&P 500 Index.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.89%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Consumer Discretionary sector--about 99.90% of the portfolio.Looking at individual holdings, Tapestry Inc (TPR) accounts for about 2.83% of total assets, followed by Starbucks Corp (SBUX) and Darden Restaurants Inc (DRI).The top 10 holdings account for about 23.80% of total assets under management.Performance and RiskThe ETF has lost about -5.24% and is up roughly 3.86% so far this year and in the past one year (as of 03/18/2025), respectively. RSPD has traded between $45.16 and $56.13 during this last 52-week period.The ETF has a beta of 1.39 and standard deviation of 21.71% for the trailing three-year period. With about 52 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 Equal Weight Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSPD is a reasonable option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.70 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $20.62 billion. VCR has an expense ratio of 0.09% and XLY charges 0.08%.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 Consumer Discretionary ETF (RSPD): ETF Research Reports Starbucks Corporation (SBUX): Free Stock Analysis Report Darden Restaurants, Inc. (DRI): Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Tapestry, Inc. (TPR): 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