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

Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Technology ETF (RSPT) is a smart beta exchange traded fund offering broad exposure to the Technology 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.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.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.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexThe fund is sponsored by Invesco. It has amassed assets over $2.86 billion, making it one of the larger ETFs in the Technology ETFs. Before fees and expenses, RSPT seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH INDEX .The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology 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 RSPT are 0.40%, which makes it one of the cheaper products in the space.The fund has a 12-month trailing dividend yield of 0.40%.Sector Exposure and Top HoldingsETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.For RSPT, it has heaviest allocation in the Information Technology sector --about 100% of the portfolio.When you look at individual holdings, Verisign Inc (VRSN) accounts for about 1.66% of the fund's total assets, followed by Cadence Design Systems Inc (CDNS) and Motorola Solutions Inc (MSI).RSPT's top 10 holdings account for about 16.08% of its total assets under management.Performance and RiskThe ETF has lost about -14.98% and is down about -2.51% so far this year and in the past one year (as of 04/21/2025), respectively. RSPT has traded between $29.52 and $40.28 during this last 52-week period.The fund has a beta of 1.21 and standard deviation of 25.20% for the trailing three-year period. With about 71 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 Equal Weight Technology ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $59.68 billion in assets, Vanguard Information Technology ETF has $70.49 billion. XLK has an expense ratio of 0.08% and VGT charges 0.09%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology 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 Technology ETF (RSPT): ETF Research Reports VeriSign, Inc. (VRSN): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): 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