Explore the potential benefits and risks of investing in the Invesco RSPU ETF
City: New York. The Invesco S&P 500 Equal Weight Utilities ETF, or RSPU, started on November 1, 2006. It’s designed to give you broad access to the utilities sector.
These passively managed ETFs are gaining traction among both big institutions and everyday investors. They’re popular because they’re low-cost, transparent, and flexible, making them great for long-term investing.
Sector ETFs like RSPU let you invest in a wide range of companies within a specific sector, which helps reduce risk. The utilities sector is one of the 16 broad categories in the Zacks Industry classification and is currently ranked in the top 31%.
Invesco sponsors this fund, which has over $367 million in assets. RSPU aims to match the performance of the S&P 500 Equal Weight Telecommunication Services & Utilities Index.
This index gives equal weight to stocks in the utilities and telecommunication sectors of the S&P 500. It’s a solid choice if you’re looking to diversify your investments.
When it comes to costs, RSPU has an expense ratio of 0.40%, which is pretty standard for similar funds. Plus, it offers a 12-month trailing dividend yield of 2.41%.
ETFs like RSPU help spread out your risk, but it’s still smart to check what’s in the fund before you invest. This ETF is fully focused on the utilities sector, with Vistra Corp making up about 3.61% of its assets, followed by Exelon and Entergy.
In terms of performance, RSPU has seen a slight dip of about -0.78% this year, but it was up around 23.05% over the last 12 months. It has traded between $51.40 and $71.48 in the past year.
With a beta of 0.65, RSPU is less volatile than the market, but it has a standard deviation of 17.87% over the last three years, indicating some risk. It holds about 32 stocks, which is more concentrated than many other ETFs.
RSPU has a Zacks ETF Rank of 3, which means it’s a “Hold.” This makes it a decent option for those looking to invest in utilities. If you’re curious, you might also check out other ETFs like the Vanguard Utilities ETF or the Utilities Select Sector SPDR ETF.
Vanguard’s ETF has $6.46 billion in assets and charges a lower expense ratio of 0.10%, while the Utilities Select Sector SPDR ETF has $16.42 billion and charges 0.09%.
For more info on RSPU and other ETFs, you can visit Zacks ETF Center. They have a lot of resources to help you find the right investment for your goals.
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