The Invesco S&P 500 Equal Weight Energy ETF (RSPG) offers unique exposure to the energy sector, but is it the right choice for investors today?
Pittsburgh: The Invesco S&P 500 Equal Weight Energy ETF, or RSPG, is designed to give investors broad exposure to the energy sector. Launched in 2006, it’s a smart beta ETF, which means it aims to outperform traditional market cap-weighted funds.
Smart beta ETFs are a bit different from the usual ones. Instead of just following market cap, they try to pick stocks based on certain characteristics that might lead to better returns. RSPG focuses on equal weighting, which means every stock in the energy sector gets the same amount of investment, rather than just the biggest companies.
Managed by Invesco, RSPG has gathered over $565 million in assets. It tracks the S&P 500 Equal Weight Energy Plus Index, which equally weights stocks in the energy sector. This approach can help reduce the risk tied to any single stock.
When it comes to costs, RSPG has an annual expense ratio of 0.40%, making it one of the more affordable options in the energy ETF space. Plus, it offers a decent dividend yield of 2.21% over the past year.
RSPG is heavily invested in the energy sector, with about 100% of its portfolio dedicated to it. The top holdings include EQT Corp, Coterra Energy, and APA Corp, which together make up nearly half of the fund’s assets.
In terms of performance, RSPG has seen a return of about 10.16% and is up around 19.10% this year. It has traded between $69.70 and $86.09 over the past year, showing some volatility.
If you’re considering RSPG, it’s worth noting there are other options out there. For instance, the Vanguard Energy ETF and the Energy Select Sector SPDR ETF are also popular choices, with lower expense ratios.
In the end, RSPG could be a solid pick for those looking to invest in the energy sector, but it’s always good to compare with other ETFs to find the best fit for your investment goals.
