Designed to provide broad exposure to the Technology ETFs category of the market, the Invesco S&P 500 Equal Weight Technology ETF (RSPT) is a smart beta exchange traded fund launched on 11/01/2006.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
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.
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
RSPT is managed by Invesco, and this fund has amassed over $4.07 billion, which makes it one of the larger ETFs in the Technology ETFs. Before fees and expenses, RSPT seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH INDEX .
The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology 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.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.40%.
RSPT's 12-month trailing dividend yield is 0.27%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
RSPT's heaviest allocation is in the Information Technology sector, which is about 100% of the portfolio.
Looking at individual holdings, Sandisk Corp/de (SNDK) accounts for about 3.52% of total assets, followed by Western Digital Corp (WDC) and Teradyne Inc (TER).
Its top 10 holdings account for approximately 21.04% of RSPT's total assets under management.
Performance and Risk
So far this year, RSPT has gained about 2.55%, and is up about 28.31% in the last one year (as of 03/06/2026). During this past 52-week period, the fund has traded between $29.52 and $48.75.
The fund has a beta of 1.24 and standard deviation of 21.83% for the trailing three-year period. With about 74 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P 500 Equal Weight Technology ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $88.1 billion in assets, Vanguard Information Technology ETF has $110.11 billion. XLK has an expense ratio of 0.08% and VGT changes 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology 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 Technology ETF (RSPT): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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