Should You Invest in the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS)?

Designed to provide broad exposure to the Consumer Staples - Broad segment of the equity market, the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) is a passively managed exchange traded fund launched on 11/01/2006.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $264.88 million, making it one of the average sized ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. RSPS seeks to match the performance of the S&P 500 EQL WEIGHT CONSUMER STAPLES INDX before fees and expenses.

The S&P 500 Equal Weight Consumer Staples Index equally weights stocks in the consumer staples sector of the S&P 500 Index.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.40%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.49%.

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.

This ETF has heaviest allocation in the Consumer Staples sector--about 100% of the portfolio.

Looking at individual holdings, Dollar Tree Inc (DLTR) accounts for about 3.54% of total assets, followed by Dollar General Corp (DG) and Walmart Inc (WMT).

The top 10 holdings account for about 29.49% of total assets under management.

Performance and Risk

The ETF has lost about -0.27% and is down about -5.27% so far this year and in the past one year (as of 05/23/2025), respectively. RSPS has traded between $28.68 and $32.71 during this last 52-week period.

The ETF has a beta of 0.54 and standard deviation of 13.17% for the trailing three-year period. With about 40 holdings, it has more concentrated exposure than peers.

Alternatives

Invesco S&P 500 Equal Weight Consumer Staples ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. RSPS, then, is not a suitable option for investors seeking exposure to the Consumer Staples ETFs segment of the market. However, there are better ETFs in the space to consider.

Vanguard Consumer Staples ETF (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $7.53 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.14 billion. VDC has an expense ratio of 0.09% and XLP 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research