Looking for broad exposure to the Energy - Broad segment of the equity market? You should consider the Invesco S&P 500 Equal Weight Energy ETF (RSPG), a passively managed exchange traded fund launched on 11/01/2006.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $510.81 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
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 one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.30%.
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, Texas Pacific Land Corp (TPL) accounts for about 5.22% of total assets, followed by Eqt Corp (EQT) and Targa Resources Corp (TRGP).
The top 10 holdings account for about 48.08% of total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Equal Weight Energy ETF return is roughly 5.40% so far, and it's up approximately 3.09% over the last 12 months (as of 03/18/2025). RSPG has traded between $73.16 and $86.09 in this past 52-week period.
The ETF has a beta of 1.38 and standard deviation of 19.40% for the trailing three-year period. With about 24 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 good 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 $7.82 billion in assets, Energy Select Sector SPDR ETF has $33.02 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
EQT Corporation (EQT) : Free Stock Analysis Report
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
Targa Resources, Inc. (TRGP) : Free Stock Analysis Report
Vanguard Energy ETF (VDE): ETF Research Reports
Texas Pacific Land Corporation (TPL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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