The Invesco S&P 500 Equal Weight Technology ETF (RSPT) was launched on 11/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $3.39 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. RSPT seeks to match the performance of the S&P 500 EQUAL WEIGHT INFO TECH INDEX before fees and expenses.
The S&P 500 Equal Weight Information Technology Index equally weights stocks in the information technology sector of the S&P 500 Index.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.34%.
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 Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Broadcom Inc (AVGO) accounts for about 1.87% of total assets, followed by Jabil Inc (JBL) and Teradyne Inc (TER).
The top 10 holdings account for about 16.19% of total assets under management.
Performance and Risk
So far this year, RSPT has lost about -0.83%, and is up roughly 15.93% in the last one year (as of 01/14/2025). During this past 52-week period, the fund has traded between $31.79 and $39.55.
The ETF has a beta of 1.17 and standard deviation of 23.96% for the trailing three-year period. With about 70 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Equal Weight Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RSPT is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
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. Technology Select Sector SPDR ETF has $70.70 billion in assets, Vanguard Information Technology ETF has $82.74 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
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 key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Invesco S&P 500 Equal Weight Technology ETF (RSPT): ETF Research Reports
Jabil, Inc. (JBL) : Free Stock Analysis Report
Teradyne, Inc. (TER) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
