The Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) was launched on 11/01/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Consumer Discretionary 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.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Invesco, RSPD has amassed assets over $218.8 million, making it one of the average sized ETFs in the Consumer Discretionary ETFs. RSPD, before fees and expenses, seeks to match the performance of the S&P 500 EQL WEIGHT CONS DISCRETIONARY ID.
The S&P 500 Equal Weight Consumer Discretionary Index equally weights stocks in the consumer discretionary 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.
Operating expenses on an annual basis are 0.40% for this ETF, which makes it on par with most peer products in the space.
RSPD's 12-month trailing dividend yield is 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.
For RSPD, it has heaviest allocation in the Consumer Discretionary sector --about 100% of the portfolio.
When you look at individual holdings, Norwegian Cruise Line Holdings Ltd (NCLH) accounts for about 2.53% of the fund's total assets, followed by Carnival Corp (CCL) and Royal Caribbean Cruises Ltd (RCL).
The top 10 holdings account for about 23.09% of total assets under management.
Performance and Risk
The ETF has added about 3.42% so far this year and is up about 9.19% in the last one year (as of 02/13/2026). In the past 52-week period, it has traded between $44.09 and $60.02
The fund has a beta of 1.18 and standard deviation of 18.60% for the trailing three-year period. With about 51 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P 500 Equal Weight Consumer Discretionary ETF is a reasonable option for investors seeking to outperform the Consumer Discretionary ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $6.09 billion in assets, State Street Consumer Discretionary Select Sector SPDR ETF has $22.34 billion. VCR has an expense ratio of 0.09% and XLY 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 Consumer Discretionary 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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Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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