Explore the potential benefits and risks of investing in the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) for your portfolio.
More and more folks are leaning towards these types of ETFs. They’re low-cost, transparent, and flexible, making them great for long-term investing. Plus, they help spread out risk by investing in a bunch of companies at once.
This ETF focuses entirely on the consumer staples sector, which is one of the 16 sectors tracked by Zacks. Right now, it’s sitting in the bottom 19% of those sectors, so it’s not exactly the hottest pick.
Invesco sponsors this fund, which has over $271 million in assets. It aims to match the performance of the S&P 500 Equal Weight Consumer Staples Index, which treats all stocks in the sector equally.
When you’re looking at ETFs, the expense ratio is key. RSPS has an annual operating cost of 0.40%, which is pretty standard for its peers. It also offers a 12-month trailing dividend yield of 2.22%.
Before you dive in, check out what’s in the ETF. RSPS is fully invested in consumer staples, with Target Corp making up about 2.86% of its assets. The top ten holdings account for nearly 28% of the total.
This year, RSPS has dipped about 3.49%, and over the past year, it’s down about 5.49%. It’s been trading between $29.04 and $32.93 in the last 52 weeks, so it’s had its ups and downs.
With a beta of 0.59, it’s less volatile than the market, but it has a standard deviation of 13.31% over the last three years. It holds around 39 stocks, which is a bit more concentrated than some other ETFs.
If you’re considering RSPS, it’s rated a 3 (Hold) by Zacks, which means it’s a decent option for consumer staples exposure. But you might also want to look at other ETFs like the Vanguard Consumer Staples ETF or the Consumer Staples Select Sector SPDR ETF, which have lower expense ratios.
In short, if you’re curious about RSPS or other ETFs, check out Zacks ETF Center for more info. They’ve got newsletters and reports to keep you in the loop on the latest trends and recommendations.
