Is Invesco S&P 500 Equal Weight Energy ETF (RSPG) a Strong ETF Right Now?

The Invesco S&P 500 Equal Weight Energy ETF (RSPG) was launched on 11/01/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Energy ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexManaged by Invesco, RSPG has amassed assets over $436.72 million, making it one of the larger ETFs in the Energy ETFs. Before fees and expenses, RSPG seeks to match the performance of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX .The S&P 500 Equal Weight Energy Plus Index equally weights stocks in the energy sector of the S&P 500 Index.Cost & Other ExpensesSince 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.Operating expenses on an annual basis are 0.40% for this ETF, which makes it one of the cheaper products in the space.It's 12-month trailing dividend yield comes in at 2.69%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Representing 100% of the portfolio, the fund has heaviest allocation to the Energy sector.Looking at individual holdings, Williams Cos Inc/the (WMB) accounts for about 5.22% of total assets, followed by Eqt Corp (EQT) and Marathon Petroleum Corp (MPC).Its top 10 holdings account for approximately 48.49% of RSPG's total assets under management.Performance and RiskThe ETF has lost about -4.44% and is down about -9.43% so far this year and in the past one year (as of 05/22/2025), respectively. RSPG has traded between $65.43 and $86.09 during this last 52-week period.The ETF has a beta of 0.87 and standard deviation of 23.36% 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 is a reasonable option for investors seeking to outperform the Energy ETFs segment of the market. However, there are other ETFs in the space which investors could consider.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 $6.79 billion in assets, Energy Select Sector SPDR ETF has $26.81 billion. VDE has an expense ratio of 0.09% and XLE charges 0.08%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Energy ETFs.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 Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report EQT Corporation (EQT): Free Stock Analysis Report Marathon Petroleum Corporation (MPC): Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks