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

If you're interested in broad exposure to the Utilities - Broad segment of the equity market, look no further than the Invesco S&P 500 Equal Weight Utilities ETF (RSPU), a passively managed exchange traded fund launched on 11/01/2006.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 are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $376.69 million, making it one of the average sized ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. RSPU seeks to match the performance of the S&P 500 EQUAL WEIGHT UTILITIES PLUS INDX before fees and expenses.The S&P 500 Equal Weight Utilities Plus Index equally weights the common stocks of all companies included in the S&P 500 Index that are classified as members of the utilities sector.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.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 2.27%.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 Utilities sector--about 100% of the portfolio.Looking at individual holdings, Constellation Energy Corp (CEG) accounts for about 4.10% of total assets, followed by Vistra Corp (VST) and Entergy Corp (ETR).The top 10 holdings account for about 35.09% of total assets under management.Performance and RiskYear-to-date, the Invesco S&P 500 Equal Weight Utilities ETF return is roughly 5.31% so far, and is up about 30.06% over the last 12 months (as of 03/17/2025). RSPU has traded between $54.05 and $71.48 in this past 52-week period.The ETF has a beta of 0.62 and standard deviation of 17.87% 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSPU is a sufficient option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space.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 $6.71 billion in assets, Utilities Select Sector SPDR ETF has $17.64 billion. VPU has an expense ratio of 0.09% and XLU 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 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks