Is Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) a Strong ETF Right Now?

Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) is a smart beta exchange traded fund offering broad exposure to the Consumer Discretionary ETFs category of the market.

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.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking 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.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is managed by Invesco. RSPD has been able to amass assets over $210.97 million, making it one of the average sized ETFs in the Consumer Discretionary ETFs. Before fees and expenses, this particular fund 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

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.

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 0.95%.

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.

Representing 99.90% of the portfolio, the fund has heaviest allocation to the Consumer Discretionary sector.

When you look at individual holdings, Ulta Beauty Inc (ULTA) accounts for about 2.36% of the fund's total assets, followed by Booking Holdings Inc (BKNG) and Tesla Inc (TSLA).

RSPD's top 10 holdings account for about 22.03% of its total assets under management.

Performance and Risk

The ETF has lost about -1.85% and is up about 9.75% so far this year and in the past one year (as of 06/05/2025), respectively. RSPD has traded between $44.09 and $56.13 during this last 52-week period.

The fund has a beta of 1.21 and standard deviation of 21.74% for the trailing three-year period. With about 53 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P 500 Equal Weight Consumer Discretionary ETF is not a suitable option for investors seeking to outperform the Consumer Discretionary ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.

Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.84 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $21.60 billion. VCR has an expense ratio of 0.09% and XLY charges 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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This article originally published on Zacks Investment Research (zacks.com).

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