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

A smart beta exchange traded fund, the Invesco S&P 500 Equal Weight Industrials ETF (RSPN) debuted on 11/01/2006, and offers broad exposure to the Industrials 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.

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

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.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Invesco, and has been able to amass over $995.39 million, which makes 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

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.

RSPN's 12-month trailing dividend yield is 0.78%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

Representing 100% of the portfolio, the fund has heaviest allocation to the Industrials sector.

When you look at individual holdings, Huntington Ingalls Industries Inc (HII) accounts for about 1.43% of the fund's total assets, followed by Boeing Co/the (BA) and L3harris Technologies Inc (LHX).

RSPN's top 10 holdings account for about 13.76% of its total assets under management.

Performance and Risk

Year-to-date, the Invesco S&P 500 Equal Weight Industrials ETF has added about 9.78% so far, and is up about 21.57% over the last 12 months (as of 02/13/2026). RSPN has traded between $43.34 $63.34 in this past 52-week period.

RSPN has a beta of 1.07 and standard deviation of 16.38% for the trailing three-year period. With about 83 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.

First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $8.39 billion in assets, State Street Industrial Select Sector SPDR ETF has $30.16 billion. AIRR has an expense ratio of 0.70% and XLI 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 Industrials ETFs

Bottom Line

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

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