Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Invesco S&P 500 Equal Weight Energy ETF (RSPG) is a passively managed exchange traded fund launched on 11/01/2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $453.06 million, making it one of the larger ETFs attempting to match the performance of the Energy - Broad segment of the equity market. RSPG seeks to match the performance of the S&P 500 EQUAL WEIGHT ENERGY PLUS INDEX before fees and expenses.
The S&P 500 Equal Weight Energy Plus Index equally weights stocks in the energy sector of the S&P 500 Index.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.58%.
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.
This ETF has heaviest allocation in the Energy sector--about 100% of the portfolio.
Looking at individual holdings, Williams Cos Inc/the (WMB) accounts for about 5.07% of total assets, followed by Eqt Corp (EQT) and Kinder Morgan Inc (KMI).
The top 10 holdings account for about 48.02% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Equal Weight Energy ETF has lost about -0.44% so far, and is down about -5.17% over the last 12 months (as of 05/19/2025). RSPG has traded between $65.43 and $86.09 in this past 52-week period.
The ETF has a beta of 0.87 and standard deviation of 23.36% for the trailing three-year period. With about 23 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco S&P 500 Equal Weight Energy ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSPG is a sufficient option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.02 billion in assets, Energy Select Sector SPDR ETF has $27.72 billion. VDE has an expense ratio of 0.09% and XLE charges 0.08%.
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 Energy ETF (RSPG): ETF Research Reports Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report EQT Corporation (EQT): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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