Should You Invest in the Invesco S&P 500 Equal Weight Energy ETF (RSPG)?

If you're interested in broad exposure to the Energy - Broad segment of the equity market, look no further than the Invesco S&P 500 Equal Weight Energy ETF (RSPG), a passively managed exchange traded fund launched on 11/01/2006.Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $548.89 million, making it one of the larger ETFs attempting to match the performance of the Energy - Broad segment of the equity market. RSPG seeks to match the performance of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX before fees and expenses.The S&P 500 Equal Weight Energy Plus Index equally weights stocks in the energy 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 one of the cheaper products in the space.It has a 12-month trailing dividend yield of 2.27%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Energy sector--about 100% of the portfolio.Looking at individual holdings, Eqt Corp (EQT) accounts for about 4.88% of total assets, followed by Coterra Energy Inc (CTRA) and Apa Corp (APA).The top 10 holdings account for about 47.59% of total assets under management.Performance and RiskThe ETF return is roughly 7.01% so far this year and it's up approximately 15.76% in the last one year (as of 01/14/2025). In that past 52-week period, it has traded between $69.70 and $86.09.The ETF has a beta of 1.42 and standard deviation of 18.90% for the trailing three-year period. With about 23 holdings, it has more concentrated exposure than peers.AlternativesInvesco S&P 500 Equal Weight Energy 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, RSPG is a sufficient option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.92 billion in assets, Energy Select Sector SPDR ETF has $34.66 billion. VDE has an expense ratio of 0.10% and XLE charges 0.09%.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 Energy ETF (RSPG): ETF Research Reports APA Corporation (APA): Free Stock Analysis Report EQT Corporation (EQT): Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research Reports Coterra Energy Inc. (CTRA): 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