Should You Invest in the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD)?

Looking for broad exposure to the Consumer Discretionary - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD), a passively managed exchange traded fund launched on 11/01/2006.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $207.32 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. RSPD seeks to match the performance of the S&P 500 EQL WEIGHT CONS DISCRETIONARY ID before fees and expenses.

The S&P 500 Equal Weight Consumer Discretionary Index equally weights stocks in the consumer discretionary sector of the S&P 500 Index.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.70%.

Sector Exposure and Top Holdings

While 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.

This ETF has heaviest allocation in the Consumer Discretionary sector--about 100% of the portfolio.

Looking at individual holdings, Carnival Corp (CCL) accounts for about 2.33% of total assets, followed by Royal Caribbean Cruises Ltd (RCL) and Nike Inc (NKE).

The top 10 holdings account for about 21.73% of total assets under management.

Performance and Risk

The ETF return is roughly 5.65% so far this year and is up about 15.50% in the last one year (as of 07/23/2025). In that past 52-week period, it has traded between $44.09 and $56.27.

The ETF has a beta of 1.20 and standard deviation of 20.84% for the trailing three-year period. With about 52 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P 500 Equal Weight Consumer Discretionary ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. RSPD, then, is not a great choice for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. However, there are better ETFs in the space to consider.

Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $6.29 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $22.97 billion. VCR has an expense ratio of 0.09% and XLY charges 0.08%.

Bottom Line

To 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.

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This article originally published on Zacks Investment Research (zacks.com).

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