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

Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN) is a smart beta exchange traded fund offering broad exposure to the Industrials ETFs category of the market.

What Are Smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

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.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.

Fund Sponsor & Index

The fund is managed by Invesco. RSPN has been able to amass assets over $642.16 million, making it one of the average sized ETFs in the Industrials ETFs. Before fees and expenses, this particular fund seeks to match the performance of the S&P 500 EQUAL WEIGHT INDUSTRIALS INDEX .

The S&P 500 Equal Weight Industrials Index equally weights stocks in the industrials sector of the S&P 500 Index.

Cost & Other Expenses

Cost 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.

Operating expenses on an annual basis are 0.40% for RSPN, making it on par with most peer products in the space.

RSPN's 12-month trailing dividend yield is 1.01%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

RSPN's heaviest allocation is in the Industrials sector, which is about 100% of the portfolio.

When you look at individual holdings, Uber Technologies Inc (UBER) accounts for about 1.65% of the fund's total assets, followed by General Electric Co (GE) and 3m Co (MMM).

Its top 10 holdings account for approximately 15.44% of RSPN's total assets under management.

Performance and Risk

So far this year, RSPN has lost about -2.31%, and was up about 3.59% in the last one year (as of 04/01/2025). During this past 52-week period, the fund has traded between $44.85 and $55.08.

The fund has a beta of 1.14 and standard deviation of 17.72% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P 500 Equal Weight Industrials ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard Industrials ETF (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.36 billion in assets, Industrial Select Sector SPDR ETF has $19.92 billion. VIS has an expense ratio of 0.09% and XLI charges 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 Industrials ETFs.

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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