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

A smart beta exchange traded fund, the Invesco S&P 500 Equal Weight Energy ETF (RSPG) debuted on 11/01/2006, and offers broad exposure to the Energy ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexThe fund is managed by Invesco, and has been able to amass over $430.95 million, which makes it one of the larger ETFs in the Energy ETFs. RSPG, before fees and expenses, 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 ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.Annual operating expenses for RSPG are 0.40%, which makes it one of the cheaper products in the space.It's 12-month trailing dividend yield comes in at 2.62%.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.For RSPG, it has heaviest allocation in the Energy sector --about 100% of the portfolio.Looking at individual holdings, Valero Energy Corp (VLO) accounts for about 4.86% of total assets, followed by Marathon Petroleum Corp (MPC) and Phillips 66 (PSX).Its top 10 holdings account for approximately 46.8% of RSPG's total assets under management.Performance and RiskSo far this year, RSPG has added roughly 1.44%, and is down about -1.67% in the last one year (as of 07/25/2025). During this past 52-week period, the fund has traded between $65.43 and $86.09.RSPG has a beta of 0.87 and standard deviation of 23.06% 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 $7.22 billion in assets, Energy Select Sector SPDR ETF has $27.74 billion. VDE has an expense ratio of 0.09% and XLE changes 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 ETFsBottom 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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks