Is Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) a Strong ETF Right Now?

Launched on 11/01/2006, the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) is a smart beta exchange traded fund offering broad exposure to the Consumer Discretionary ETFs category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.Fund Sponsor & IndexThe fund is managed by Invesco. RSPD has been able to amass assets over $287.99 million, making it one of the larger ETFs in the Consumer Discretionary ETFs. This particular fund seeks to match the performance of the S&P 500 EQL WEIGHT CONS DISCRETIONARY ID before fees and expenses.The S&P 500 Equal Weight Consumer Discretionary Index equally weights stocks in the consumer discretionary sector of the S&P 500 Index.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Operating expenses on an annual basis are 0.40% for this ETF, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 0.62%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Consumer Discretionary sector - about 100% of the portfolio.Taking into account individual holdings, Ralph Lauren Corp (RL) accounts for about 2.32% of the fund's total assets, followed by Carvana Co (CVNA) and Carnival Corp (CCL).The top 10 holdings account for about 22.4% of total assets under management.Performance and RiskYear-to-date, the Invesco S&P 500 Equal Weight Consumer Discretionary ETF has lost about -0.47% so far, and was up about 9.52% over the last 12 months (as of 06/17/2026). RSPD has traded between $51.21 $60.02 in this past 52-week period. The fund has a beta of 1.10 and standard deviation of 18.82% for the trailing three-year period. With about 50 holdings, it has more concentrated exposure than peers .AlternativesInvesco S&P 500 Equal Weight Consumer Discretionary ETF is not a suitable option for investors seeking to outperform the Consumer Discretionary ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.Vanguard Consumer Discretionary Index Fund ETF Shares (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary Index Fund ETF Shares has $6.24 billion in assets, State Street Consumer Discretionary Select Sector SPDR ETF has $22.82 billion. VCR has an expense ratio of 0.09% and XLY 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 Consumer Discretionary ETFsBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks