The Invesco S&P 500 Equal Weight Industrials ETF (RSPN) made its debut on 11/01/2006, and is a smart beta exchange traded fund that provides broad exposure to the Industrials ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $1.07 billion, this makes it one of the average sized ETFs in the Industrials ETFs. RSPN is managed by Invesco. Before fees and expenses, RSPN seeks to match the performance of the S&P 500 EQUAL WEIGHT INDUSTRIALS INDEX .
The S&P 500 Equal Weight Industrials Index equally weights stocks in the industrials sector of the S&P 500 Index.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.40% for RSPN, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.84%.
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.
RSPN's heaviest allocation is in the Industrials sector, which is about 100% of the portfolio.
Looking at individual holdings, Delta Air Lines Inc (DAL) accounts for about 1.46% of total assets, followed by Ge Vernova Inc (GEV) and Hubbell Inc (HUBB).
The top 10 holdings account for about 13.9% of total assets under management.
Performance and Risk
The ETF has gained about 9.35% and it's up approximately 18.83% so far this year and in the past one year (as of 06/24/2026), respectively. RSPN has traded between $52.40 and $63.93 during this last 52-week period.
RSPN has a beta of 1.01 and standard deviation of 16.49% for the trailing three-year period. With about 82 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P 500 Equal Weight Industrials ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $11.02 billion in assets, State Street Industrial Select Sector SPDR ETF has $32.23 billion. AIRR has an expense ratio of 0.69% and XLI changes 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs
Bottom Line
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Invesco S&P 500 Equal Weight Industrials ETF (RSPN): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).