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

Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Invesco S&P 500 Equal Weight ETF (RSP) is a smart beta exchange traded fund launched on 04/24/2003.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.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.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.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 & IndexBecause the fund has amassed over $74.67 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Blend. RSP is managed by Invesco. This particular fund, before fees and expenses, seeks to match the performance of the S&P 500 Equal Weight Index.The S&P 500 Equal Weight Index equally weights the stocks in the S&P 500 Index.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.Operating expenses on an annual basis are 0.20% for RSP, making it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 1.17%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.For RSP, it has heaviest allocation in the Industrials sector --about 15.9% of the portfolio --while Financials and Information Technology round out the top three.Taking into account individual holdings, Invesco Government & Agency Portfolio (AGPXX) accounts for about 0.32% of the fund's total assets, followed by Coinbase Global Inc (COIN) and Oracle Corp (ORCL).The top 10 holdings account for about 2.52% of total assets under management.Performance and RiskThe ETF has added about 6.97% so far this year and was up about 10.8% in the last one year (as of 07/23/2025). In the past 52-week period, it has traded between $152.93 and $187.62The ETF has a beta of 0.97 and standard deviation of 16.20% for the trailing three-year period. With about 507 holdings, it effectively diversifies company-specific risk .AlternativesInvesco S&P 500 Equal Weight ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.SPDR S&P 500 ETF (SPY) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. SPDR S&P 500 ETF has $649.33 billion in assets, Vanguard S&P 500 ETF has $695.06 billion. SPY has an expense ratio of 0.09% and VOO changes 0.03%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap BlendBottom 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 ETF (RSP): 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