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

Making its debut on 11/01/2006, smart beta exchange traded fund Invesco S&P 500 Equal Weight Energy ETF (RSPG) provides investors broad exposure to the Energy ETFs category of the market.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.

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.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

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

Managed by Invesco, RSPG has amassed assets over $504 million, making it one of the larger ETFs in the Energy ETFs. RSPG, before fees and expenses, seeks to match the performance of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX .

The S&P 500 Equal Weight Energy Plus Index equally weights stocks in the energy 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 this ETF, which makes it one of the cheaper products in the space.

The fund has a 12-month trailing dividend yield of 2.36%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

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

Taking into account individual holdings, Slb Ltd (SLB) accounts for about 5.18% of the fund's total assets, followed by Halliburton Co (HAL) and Chevron Corp (CVX).

The top 10 holdings account for about 48.36% of total assets under management.

Performance and Risk

Year-to-date, the Invesco S&P 500 Equal Weight Energy ETF return is roughly 10.1% so far, and it's up approximately 10.54% over the last 12 months (as of 01/28/2026). RSPG has traded between $65.43 $87.62 in this past 52-week period.

RSPG has a beta of 0.64 and standard deviation of 22.45% for the trailing three-year period. With about 25 holdings, it has more concentrated exposure than peers .

Alternatives

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

Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the State Street Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.81 billion in assets, State Street Energy Select Sector SPDR ETF has $30.62 billion. VDE has an expense ratio of 0.09% and XLE changes 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 Energy ETFs

Bottom Line

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

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