Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Energy ETF (RSPG) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy – Broad segment of the equity market.
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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy – Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
The fund is sponsored by Invesco. It has amassed assets over $466.27 million, making it one of the average sized 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.
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
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 3.84%.
Sector Exposure and Top Holdings
It 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 Energy sector–about 100% of the portfolio.
Looking at individual holdings, Eqt Corp (EQT) accounts for about 5.33% of total assets, followed by Williams Cos Inc/the (WMB) and Baker Hughes Co (BKR).
The top 10 holdings account for about 46.03% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Equal Weight Energy ETF has lost about -4.19% so far, and was up about 0% over the last 12 months (as of 06/26/2023). RSPG has traded between $64.94 and $68.18 in this past 52-week period.
The ETF has a beta of 1.61. With about 23 holdings, it has more concentrated exposure than peers.
Invesco 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 reasonable 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 $7.11 billion in assets, Energy Select Sector SPDR ETF has $32.30 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
To 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.