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

Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Broad segment of the equity market.While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $686.95 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. RSPN seeks to match the performance of the S&P 500 EQUAL WEIGHT INDUSTRIALS INDEX before fees and expenses.The S&P 500 Equal Weight Industrials Index equally weights stocks in the industrials sector of the S&P 500 Index.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.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 0.86%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Industrials sector--about 100% of the portfolio.Looking at individual holdings, Jacobs Solutions Inc (J) accounts for about 1.47% of total assets, followed by United Airlines Holdings Inc (UAL) and Ge Vernova Inc (GEV).The top 10 holdings account for about 14.02% of total assets under management.Performance and RiskThe ETF has added roughly 27.30% and is up about 44.44% so far this year and in the past one year (as of 11/11/2024), respectively. RSPN has traded between $38.50 and $54.55 during this last 52-week period.The ETF has a beta of 1.12 and standard deviation of 18.30% for the trailing three-year period. With about 79 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 Equal Weight Industrials ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RSPN is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that 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 $5.94 billion in assets, Industrial Select Sector SPDR ETF has $21.25 billion. VIS has an expense ratio of 0.10% and XLI 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 Industrials ETF (RSPN): ETF Research Reports 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 Jacobs Solutions Inc. (J): Free Stock Analysis Report 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