Explore the potential of the Invesco S&P 500 Equal Weight Financials ETF for your investment portfolio
New York: If you’re looking to dive into the financial sector, the Invesco S&P 500 Equal Weight Financials ETF (RSPF) might catch your eye. Launched back in 2006, this ETF gives you a broad slice of the financial market.
It’s become a favorite for both retail and institutional investors. Why? Well, these passively managed ETFs are known for being cost-effective, transparent, and flexible. Plus, they’re great for long-term investors.
Sector ETFs like this one let you invest in a whole group of companies, which helps spread out your risk. The Financials sector is one of the 16 broad categories in the Zacks Industry classification, and it’s currently sitting pretty in the top 19%.
Invesco sponsors this fund, which has gathered over $299 million in assets. RSPF aims to mirror the performance of the S&P 500 Equal Weight Financials Index, minus fees and expenses.
This index treats all stocks in the financial sector equally, which is pretty neat. When you look at costs, the annual operating expenses for RSPF are 0.40%, which is pretty standard for similar funds.
Right now, it has a trailing dividend yield of 0.85%. Even though ETFs are generally diversified, it’s still smart to check out what’s in the fund before you invest.
RSPF is fully invested in the Financials sector. The biggest player in its portfolio is Synchrony Financial, making up about 1.74% of total assets, followed by Wells Fargo and Raymond James.
So far this year, RSPF has dipped about 2.51%, but it’s up around 21.30% over the last year. The fund has traded between $57.66 and $78.05 in the past 52 weeks.
With about 74 holdings, it does a good job of reducing the risk tied to any single company. RSPF has a Zacks ETF Rank of 3, which means it’s a solid choice for those wanting exposure to financial ETFs.
If you’re curious about other options, you might want to check out the Vanguard Financials ETF or the Financial Select Sector SPDR ETF. They have larger asset bases and lower expense ratios.
For more info on this ETF and others, you can visit Zacks ETF Center. They also offer a free newsletter that keeps you updated on the latest in the ETF world.
